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Competition: What caused May 6 stock market collapse?

AnalyticBridge competition: investigate the spectacular stock market collapse of May 6, 2010

Date: May 16, 2010

This is the largest one-day drop in history, and it is known as the flash crash. In 6 minutes Dow lost 600 points then recovered. The difference between high and low on May 6 was about 1,000 points, and Dow went below 10,000. Is it a technical glitch, foul play or natural cause?

To investigate this massive collapse, you are asked to:

  • download publicly available daily stock prices (volume, open, low, high, close) for all stocks that are listed on the NYSE or Nasdaq (you can get the data from Yahoo Finance and download it using a web robot - there is about a few thousand stocks)
  • is the collapse evenly spread among all stocks? Any abnormality? What would the worse drop (for an individual stock) be if the average is 10%, given the number of stocks in NYSE or Nasdaq?
  • see also this posting.
  • The winner will be featured as our Member of the Month in August 2010 ($250 award)
  • An additional $750 prize is offered
  • The winner will be invited to become a member of AnalyticBridge's Executive Club and will receive our certification (none can be purchased)
  • This represents a terrific career boost as we will make public announcements, press releases, etc.

Email your detailed analysis to Dr. Vincent Granville at vlg@datashaping.com by August 15, 2010. Messages larger than 2MB will not be accepted.

The subject line should be AnalyticBridge Competition 2010.

KDnuggets Home » News » 2010 » May » Competition: May 6 Market collapse?  ( < Prev | 10:n11 | Next > )