Comments by "Christian Baune" (@programaths) on "Elon Musk INVADES Twitter All Hands On Deck Meeting \u0026 He Is NOT Happy!" video.
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2:07 All those stock graphs are misleading, because they don't show the zero. Worse, two graphs can look the same AND have a different offset, making them very different.
In this graph, most people will see a huge decline, while in reality it's a 3USD drop. But it looks like zeroing. If the zero were present, it would just look like normal noise.
There are article justifying it by saying "it's done to make a point" (it's a way to say "to not be neutral" or "fit data representation to a narrative". Or even better, they justify by saying "if it is the norm, like in stock charts". That can't be invented 🤣
The best is to show the two views, because it makes it easier for people to understand that:
- Overall, it's not that consequential
- Recent event DID influence negatively the stock price
Those two bullets seems to contradict each other, so here is an explainer: The value decreased due to recent events and it may be a trend, looking at an higher scale though, the effect is limited and even less than the noise (people passing order and influencing themselves the stock price, regardless of any event).
So, that tells us that what is happening with Elon definitely skew the share price, but not sufficiently to be alarmist. Yet, it can worsen.
Good thing to do:
Go in Google, search the stock and look at it on different periods, consider the %age difference instead of absolute values, try to plot the graph with the y axis starting at zero.
Ask yourself that question: is it stable or chaotic? If stable, does it show a trend ? If chaotic, does tacking a larger period into account make it more constant ? Is considering the graph with a y axis starting at zero make it less noisy ?
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