Litecoin Seasonality - Analyzing Performance Trends From History
Some asset markets tend to perform better during certain times of the year and tend to perform worse during certain times of the year. Continuous data exists for most of Litecoin’s existence from 2013 onward.
The objective of the study was to elicit a statistic model that shows Litecoin seasonality, or its tendency to perform better during certain quarters of the year, between measured periods from 2013 through 2019. We chose to analyze the prices of Litecoin and its market capitalization by comparing values to each quarter of those years.
I used R software to visualize the data to capture trends, performed statistical summaries of the mean and standard deviations, and one-way analysis of variance (ANOVA) to compare such means. The ANOVA tests concluded that significant differences were present among the quarters.
Figure 2. Boxplot showing the BTC price of LTC by quarter
Figure 3. Boxplot showing the LTC market capitalization (in USD) by quarter
Table 1. Mean, standard deviation for LTC data
Table 2. ANOVA test for LTC summary data
Table 3. Tukey Honest Significant Differences Comparison among all 4 quarters
Figure 4. Plot of residuals vs fit for homogeneity assumption
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