Q1: How weather affects stock price?
A1: Weather condition affects people’s emotions and behaviors. People make different investment decisions under the influence of weather to their minds.
Q2: What are the relationships between price change of Hang Seng Index and weather conditions, including temperature, cloud cover and humidity?
A2: Hang Seng Index is positively related to temperature and cloud cover but negatively related to humidity.
Q3: Compared to MACD (Price indicator) as well as buy and hold, is MACD (Temperature indicator) a more profitable trading rule?
A3: No. The return for MACD (Temperature indicator) is lowest among the three strategies.