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Intro to Seasonality
Seasonality in stock market, and $MCD, data refers to recurring patterns and trends that occur at specific times of the year, typically driven by factors such as weather, holidays, or economic cycles. Seasonality Charts and Tables are invaluable tools for investors and traders seeking to identify and leverage these predictable fluctuations.
There are several methods to calculate and visualize Year-over-Year Seasonality, and we are focusing on two of them. First, we calculate the Average and Percent Changes for the same date of the year; this involves aggregating the Closing Price of the stock for each identical date across all years. This approach is referred to as Daily Seasonality.
The second method involves calculating the Average and Percent Changes for the same day of the week, during the same week of the year. Essentially, we average the Closing Prices for each day of the week (e.g., Mondays, Tuesdays, etc.) across the corresponding weeks of each year.
Understanding the seasonality of stock data can aid investors in making informed decisions, such as timing buy or sell orders to align with historically favorable periods.
Annual Metrics Summary Table for McDonald ($MCD)
The summary table below displays each row corresponding to a particular year, providing a detailed account of trading activities. In each row, the ‘Earliest Date’ column indicates the first trading day of the year, which often aligns with the company’s IPO in its first trading year. The ‘Latest Date’ column, on the other hand, represents the final trading day of that year. In addition to these dates, the table includes the total number of trading days for each year, as well as the minimum and maximum values for the High, Low, Open, and Close prices. These figures are crucial for understanding the stock’s volatility and trends within each year.
Date of the Year Seasonality (Daily: Same date of the year) – Chart
You can click the boxes/line-names to show or hide specific plot lines. This will allow you to compare the performance of specific years.
The Avg %Δ is the plot if the Average Percent Change plot. This line is calculated by averaging the day-to-day percent change of the Closing value for all the years. The CPC, or Cumulative Percent Change shows a running total sum of the percent change for each year. Lastly, the CPC: Avg plot line is the average of all CPC plot lines across the years.
Do note that this chart has two Y-axis, on the left and right. One is for the annual price, and the other is for the percent changes and CPC.