Test Insider Trading Hypothesis Statistically (part 4)

In this video series, I test the hypothesis that the trading volume associated with a listed stock is abnormally high statistically. When coupled with the observation of a significant announcement made by the company the following trading day, it may be suggested that there is evidence indicative of the possibility of insider trading.

I failed to mention in the video series that I correlated the stock in question's trading volume with that of the index and found a non-significant correlation of r = -.009, which effectively means no association. Therefore, I did not feel it necessary to take into account general market trading activity into the analyses.

I'd be happy to learn from others about other methods people have used to test the hypothesis of abnormal trading volume on a given day.

Видео Test Insider Trading Hypothesis Statistically (part 4) канала how2stats