Analysis of Impact of Super Bowl on the Stock Market
ANALYSIS OF IMPACT OF SUPER BOWL ON THE STOCK MARKET
Abstract
The hypothesis of this research was that when the original National Football Conference (NFC) team wins the game, the U.S. stock market increases and when the American Football Conference (AFC) (except Cleveland, Pittsburg and Indianapolis) wins the Super Bowl the U.S. stock market decreases. Correlation analysis was used to determine this hypothesis of Super Bowl winner predicts U.S. stock market. The Super Bowl indicator has been accurate for 36 years out of 44 years (according to Dow Jones Industrial average), which represents a success rate of 81%. Between 1967 and 1997 it was accurate 28 times out of 31 (a better than 90%). To analyze this Super Bowl indicator, it was assumed that NFC wins as '1 ' and AFC wins as '0 '. We correlated the results when the NFC wins the game and the AFC wins the game from 1967 to 2010.
Table of Contents
Abstract i
List of Tables iii
Introduction 1
Literature Review 1
Theory 2
Hypothesis 3
Methodology 4 Data Description and Collection 4 Statistical techniques used 6
Analysis of findings 7
Summary 8
Conclusion 9
Exhibit 1 10
Exhibit 2 11
Exhibit 3 11
References 12
List of Tables
1) Changes in the Standard & Poor 's 500 Index as a Function of Super Bowl Victor……………3
2) Super Bowl winners and changes in DJIA, 1967-2010..............................................................4
3) Regression analysis results for 1967-1988 and 1967-2010........................................................8
Introduction
The literature illustrated that the Super Bowl winner was the forecaster of U.S. stock market that year. The first Super Bowl was started in 1967 and there were 45 games played up to 2011. Up to 1970, there were two teams that played in the Super Bowl, the National Football League (NFL) and the American Football League (AFL). In 1970, both of these teams were merged and formed the National Football League (NFL). The
Abstract
The hypothesis of this research was that when the original National Football Conference (NFC) team wins the game, the U.S. stock market increases and when the American Football Conference (AFC) (except Cleveland, Pittsburg and Indianapolis) wins the Super Bowl the U.S. stock market decreases. Correlation analysis was used to determine this hypothesis of Super Bowl winner predicts U.S. stock market. The Super Bowl indicator has been accurate for 36 years out of 44 years (according to Dow Jones Industrial average), which represents a success rate of 81%. Between 1967 and 1997 it was accurate 28 times out of 31 (a better than 90%). To analyze this Super Bowl indicator, it was assumed that NFC wins as '1 ' and AFC wins as '0 '. We correlated the results when the NFC wins the game and the AFC wins the game from 1967 to 2010.
Table of Contents
Abstract i
List of Tables iii
Introduction 1
Literature Review 1
Theory 2
Hypothesis 3
Methodology 4 Data Description and Collection 4 Statistical techniques used 6
Analysis of findings 7
Summary 8
Conclusion 9
Exhibit 1 10
Exhibit 2 11
Exhibit 3 11
References 12
List of Tables
1) Changes in the Standard & Poor 's 500 Index as a Function of Super Bowl Victor……………3
2) Super Bowl winners and changes in DJIA, 1967-2010..............................................................4
3) Regression analysis results for 1967-1988 and 1967-2010........................................................8
Introduction
The literature illustrated that the Super Bowl winner was the forecaster of U.S. stock market that year. The first Super Bowl was started in 1967 and there were 45 games played up to 2011. Up to 1970, there were two teams that played in the Super Bowl, the National Football League (NFL) and the American Football League (AFL). In 1970, both of these teams were merged and formed the National Football League (NFL). The
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