Skip to content

LukeDickerson19/sp500-xmas-analysis

Repository files navigation

sp500-xmas-analysis

Description

Testing the claim in this video that if the sp500 goes down in the 3 trading days before xmas and the 3 days after xmas (aka "the grinch" period) then there's a high likelyhood the sp500 will go up the following January, and the following year ... and vice versa, with a very high correlation. See screenshot grinch_stats.png for important part from video.

Results

Unfortunately, from my personal tests there is not a correlation. The direction of the following January and year is about equally likely to be up or down regardless of whether the grinch is up or down. If anyone reads on, and my analysis is incorrect please let me know.

From 1928 to 2023, the sp500 has had 63 up years (67 %), and 31 down years (33 %).

The grinch has been up 67 times (72 %) and down 26 times (28 %).

When the grinch is down, the next year is up 22 times (85 %) and down 4 times (15 %).

When the grinch is up, the next year is up 40 times (60 %) and down 27 times (40 %).

Data


years where grinch_pct_chng is negative

    year grinch_pct_chng next_jan_pct_chng next_year_pct_chng next_year
0   1931         -2.29 %            5.03 %            -8.47 %      1932
1   1932         -2.94 %            1.61 %            45.97 %      1933
2   1937         -6.80 %            1.62 %            24.90 %      1938
3   1943         -1.03 %            1.63 %            13.89 %      1944
4   1944         -0.30 %            1.05 %            30.23 %      1945
5   1946         -2.13 %            3.03 %             0.66 %      1947
6   1955         -1.72 %           -2.97 %             3.34 %      1956
7   1964         -0.04 %            3.95 %             9.74 %      1965
8   1965         -0.52 %            0.76 %           -12.86 %      1966
9   1966         -0.95 %            7.75 %            20.02 %      1967
10  1968         -2.39 %           -0.89 %           -11.42 %      1969
11  1979         -0.39 %            7.94 %            28.37 %      1980
12  1980         -0.33 %           -4.98 %           -10.11 %      1981
13  1981         -0.47 %           -1.91 %            14.58 %      1982
14  1984         -0.07 %            8.62 %            27.76 %      1985
15  1985         -0.12 %            1.04 %            15.54 %      1986
16  1986         -2.16 %           11.21 %             0.26 %      1987
17  1987         -0.84 %            0.44 %             8.51 %      1988
18  1988         -0.11 %            8.05 %            28.36 %      1989
19  1990         -0.42 %            5.35 %            27.77 %      1991
20  1992         -0.34 %            0.78 %             7.14 %      1993
21  2002         -1.83 %           -5.87 %            22.32 %      2003
22  2005         -0.37 %            0.89 %            11.78 %      2006
23  2012         -2.86 %            2.44 %            26.39 %      2013
24  2016         -0.67 %            0.93 %            18.42 %      2017
25  2022         -2.46 %            6.60 %            24.73 %      2023




year where grinch_pct_chng is positive

    year grinch_pct_chng next_jan_pct_chng next_year_pct_chng next_year
0   1928          3.94 %            3.75 %           -13.54 %      1929
1   1929          3.62 %            7.60 %           -27.57 %      1930
2   1930          1.21 %            2.15 %           -48.77 %      1931
3   1933          4.39 %           10.48 %            -6.03 %      1934
4   1934          4.32 %           -4.31 %            41.22 %      1935
5   1935          3.26 %            6.79 %            28.21 %      1936
6   1936          2.43 %            4.96 %           -37.68 %      1937
7   1938          2.15 %           -5.96 %            -4.74 %      1939
8   1939          0.24 %           -4.59 %           -16.23 %      1940
9   1940          1.54 %           -3.91 %           -17.08 %      1941
10  1941          4.05 %           -0.45 %             9.90 %      1942
11  1942          0.93 %            5.24 %            17.64 %      1943
12  1945          1.88 %            7.65 %           -11.30 %      1946
13  1947          0.13 %           -4.30 %            -0.91 %      1948
14  1948          0.86 %            1.81 %            12.31 %      1949
15  1949          1.03 %            2.34 %            22.63 %      1950
16  1950          2.05 %            4.29 %            14.44 %      1951
17  1951          0.51 %            1.43 %            11.64 %      1952
18  1952          1.10 %           -0.60 %            -6.52 %      1953
19  1954          1.13 %           -0.33 %            23.76 %      1955
20  1956          1.06 %           -3.20 %           -13.44 %      1957
21  1957          0.25 %            3.40 %            36.90 %      1958
22  1958          2.27 %            0.02 %             8.03 %      1959
23  1959          1.07 %           -7.18 %            -3.00 %      1960
24  1960          0.40 %            7.31 %            24.28 %      1961
25  1961          0.80 %           -2.99 %           -11.08 %      1962
26  1962          0.22 %            5.60 %            19.67 %      1963
27  1963          0.38 %            2.13 %            12.36 %      1964
28  1967          0.78 %           -4.03 %             8.06 %      1968
29  1969          1.13 %           -8.58 %            -0.91 %      1970
30  1970          2.48 %            5.19 %            12.00 %      1971
31  1971          1.02 %            2.23 %            16.11 %      1972
32  1973          3.16 %           -1.14 %           -29.81 %      1974
33  1974          0.37 %            9.61 %            28.42 %      1975
34  1975          1.85 %           10.96 %            18.22 %      1976
35  1976          1.56 %           -4.64 %           -11.12 %      1977
36  1977          1.83 %           -4.87 %             2.44 %      1978
37  1978          1.69 %            3.31 %            11.59 %      1979
38  1982          1.74 %            5.03 %            19.22 %      1983
39  1983          1.09 %           -0.38 %             1.95 %      1984
40  1989          2.28 %           -8.51 %            -8.19 %      1990
41  1991          7.26 %           -2.03 %             4.42 %      1992
42  1993          0.70 %            3.47 %            -1.33 %      1994
43  1994          0.27 %            2.46 %            34.16 %      1995
44  1995          1.35 %            2.46 %            19.33 %      1996
45  1996          0.67 %            6.67 %            31.67 %      1997
46  1997          1.80 %            0.54 %            26.07 %      1998
47  1998          2.36 %            4.20 %            19.64 %      1999
48  1999          1.90 %           -4.18 %            -9.27 %      2000
49  2000          5.49 %            6.45 %           -10.53 %      2001
50  2001          1.85 %           -2.12 %           -23.80 %      2002
51  2003          1.53 %            2.04 %             9.33 %      2004
52  2004          0.32 %           -1.73 %             3.84 %      2005
53  2006          0.08 %            1.53 %             3.65 %      2007
54  2007          1.26 %           -4.74 %           -37.58 %      2008
55  2008          2.18 %          -11.37 %            19.67 %      2009
56  2009          0.75 %           -5.22 %            11.00 %      2010
57  2010          0.07 %            1.12 %            -1.12 %      2011
58  2011          0.48 %            2.77 %            11.68 %      2012
59  2013          1.25 %           -2.70 %            12.39 %      2014
60  2014          0.09 %           -3.07 %            -0.69 %      2015
61  2015          1.20 %           -3.60 %            11.24 %      2016
62  2017          0.31 %            4.75 %            -7.01 %      2018
63  2018          0.74 %            7.73 %            28.71 %      2019
64  2019          0.00 %           -0.99 %            15.29 %      2020
65  2020          1.21 %            0.37 %            28.79 %      2021
66  2021          2.05 %           -5.86 %           -19.95 %      2022


all years

    year grinch_pct_chng next_jan_pct_chng next_year_pct_chng next_year
0   1928          3.94 %            3.75 %           -13.54 %      1929
1   1929          3.62 %            7.60 %           -27.57 %      1930
2   1930          1.21 %            2.15 %           -48.77 %      1931
3   1931         -2.29 %            5.03 %            -8.47 %      1932
4   1932         -2.94 %            1.61 %            45.97 %      1933
5   1933          4.39 %           10.48 %            -6.03 %      1934
6   1934          4.32 %           -4.31 %            41.22 %      1935
7   1935          3.26 %            6.79 %            28.21 %      1936
8   1936          2.43 %            4.96 %           -37.68 %      1937
9   1937         -6.80 %            1.62 %            24.90 %      1938
10  1938          2.15 %           -5.96 %            -4.74 %      1939
11  1939          0.24 %           -4.59 %           -16.23 %      1940
12  1940          1.54 %           -3.91 %           -17.08 %      1941
13  1941          4.05 %           -0.45 %             9.90 %      1942
14  1942          0.93 %            5.24 %            17.64 %      1943
15  1943         -1.03 %            1.63 %            13.89 %      1944
16  1944         -0.30 %            1.05 %            30.23 %      1945
17  1945          1.88 %            7.65 %           -11.30 %      1946
18  1946         -2.13 %            3.03 %             0.66 %      1947
19  1947          0.13 %           -4.30 %            -0.91 %      1948
20  1948          0.86 %            1.81 %            12.31 %      1949
21  1949          1.03 %            2.34 %            22.63 %      1950
22  1950          2.05 %            4.29 %            14.44 %      1951
23  1951          0.51 %            1.43 %            11.64 %      1952
24  1952          1.10 %           -0.60 %            -6.52 %      1953
25  1953          0.00 %            4.53 %            44.21 %      1954
26  1954          1.13 %           -0.33 %            23.76 %      1955
27  1955         -1.72 %           -2.97 %             3.34 %      1956
28  1956          1.06 %           -3.20 %           -13.44 %      1957
29  1957          0.25 %            3.40 %            36.90 %      1958
30  1958          2.27 %            0.02 %             8.03 %      1959
31  1959          1.07 %           -7.18 %            -3.00 %      1960
32  1960          0.40 %            7.31 %            24.28 %      1961
33  1961          0.80 %           -2.99 %           -11.08 %      1962
34  1962          0.22 %            5.60 %            19.67 %      1963
35  1963          0.38 %            2.13 %            12.36 %      1964
36  1964         -0.04 %            3.95 %             9.74 %      1965
37  1965         -0.52 %            0.76 %           -12.86 %      1966
38  1966         -0.95 %            7.75 %            20.02 %      1967
39  1967          0.78 %           -4.03 %             8.06 %      1968
40  1968         -2.39 %           -0.89 %           -11.42 %      1969
41  1969          1.13 %           -8.58 %            -0.91 %      1970
42  1970          2.48 %            5.19 %            12.00 %      1971
43  1971          1.02 %            2.23 %            16.11 %      1972
44  1973          3.16 %           -1.14 %           -29.81 %      1974
45  1974          0.37 %            9.61 %            28.42 %      1975
46  1975          1.85 %           10.96 %            18.22 %      1976
47  1976          1.56 %           -4.64 %           -11.12 %      1977
48  1977          1.83 %           -4.87 %             2.44 %      1978
49  1978          1.69 %            3.31 %            11.59 %      1979
50  1979         -0.39 %            7.94 %            28.37 %      1980
51  1980         -0.33 %           -4.98 %           -10.11 %      1981
52  1981         -0.47 %           -1.91 %            14.58 %      1982
53  1982          1.74 %            5.03 %            19.22 %      1983
54  1983          1.09 %           -0.38 %             1.95 %      1984
55  1984         -0.07 %            8.62 %            27.76 %      1985
56  1985         -0.12 %            1.04 %            15.54 %      1986
57  1986         -2.16 %           11.21 %             0.26 %      1987
58  1987         -0.84 %            0.44 %             8.51 %      1988
59  1988         -0.11 %            8.05 %            28.36 %      1989
60  1989          2.28 %           -8.51 %            -8.19 %      1990
61  1990         -0.42 %            5.35 %            27.77 %      1991
62  1991          7.26 %           -2.03 %             4.42 %      1992
63  1992         -0.34 %            0.78 %             7.14 %      1993
64  1993          0.70 %            3.47 %            -1.33 %      1994
65  1994          0.27 %            2.46 %            34.16 %      1995
66  1995          1.35 %            2.46 %            19.33 %      1996
67  1996          0.67 %            6.67 %            31.67 %      1997
68  1997          1.80 %            0.54 %            26.07 %      1998
69  1998          2.36 %            4.20 %            19.64 %      1999
70  1999          1.90 %           -4.18 %            -9.27 %      2000
71  2000          5.49 %            6.45 %           -10.53 %      2001
72  2001          1.85 %           -2.12 %           -23.80 %      2002
73  2002         -1.83 %           -5.87 %            22.32 %      2003
74  2003          1.53 %            2.04 %             9.33 %      2004
75  2004          0.32 %           -1.73 %             3.84 %      2005
76  2005         -0.37 %            0.89 %            11.78 %      2006
77  2006          0.08 %            1.53 %             3.65 %      2007
78  2007          1.26 %           -4.74 %           -37.58 %      2008
79  2008          2.18 %          -11.37 %            19.67 %      2009
80  2009          0.75 %           -5.22 %            11.00 %      2010
81  2010          0.07 %            1.12 %            -1.12 %      2011
82  2011          0.48 %            2.77 %            11.68 %      2012
83  2012         -2.86 %            2.44 %            26.39 %      2013
84  2013          1.25 %           -2.70 %            12.39 %      2014
85  2014          0.09 %           -3.07 %            -0.69 %      2015
86  2015          1.20 %           -3.60 %            11.24 %      2016
87  2016         -0.67 %            0.93 %            18.42 %      2017
88  2017          0.31 %            4.75 %            -7.01 %      2018
89  2018          0.74 %            7.73 %            28.71 %      2019
90  2019          0.00 %           -0.99 %            15.29 %      2020
91  2020          1.21 %            0.37 %            28.79 %      2021
92  2021          2.05 %           -5.86 %           -19.95 %      2022
93  2022         -2.46 %            6.60 %            24.73 %      2023

SP500 daily price data back to 1928 was aquired by manually highlighting and copy/pasting it from this website, and then cleaning it up a little with python pandas.

See file: sp500_daily_price_data_from_1928-01-01_to_2024-01-01.csv

note from website: "*Close price adjusted for splits.**Adjusted close price adjusted for splits and dividend and/or capital gain distributions."

I created a script called plot_price_data.py that allows you to easily zoom in on any timeframe. It ended up being easier to test it programatically though so I created another script called test_grinch.py, and used it to output the tables above.

About

No description, website, or topics provided.

Resources

Stars

Watchers

Forks

Releases

No releases published

Packages

No packages published

Languages