Using Heatmap Visualization to assess the performance of the DJ30 and NASDAQ100 Indices under diverse VMA trading rules

Yuhsin Chen; Paoyu Huang; Min-Yuh Day; Yensen Ni; Mei-Chu Liang

doi:10.1371/journal.pone.0284918

Using Heatmap Visualization to assess the performance of the DJ30 and NASDAQ100 Indices under diverse VMA trading rules

PLoS One. 2023 May 11;18(5):e0284918. doi: 10.1371/journal.pone.0284918. eCollection 2023.

Authors

Yuhsin Chen¹, Paoyu Huang², Min-Yuh Day³, Yensen Ni⁴, Mei-Chu Liang⁵

Affiliations

¹ Department of Accounting, Chung Yuan Christian University, Taoyuan, Taiwan.
² Department of International Business, Soochow University, Taipei, Taiwan.
³ Graduate Institute of Information Management, National Taipei University, New Taipei, Taiwan.
⁴ Department of Management Sciences, Tamkang University, New Taipei, Taiwan.
⁵ Department of Banking and Finance, Tamkang University, New Taipei, Taiwan.

Abstract

We investigate whether using various VMA trading rules would improve investment performance due to the flexibility of VMA trading rules and the aid of Heatmap Visualization. Previously, investors frequently chose the best performance derived from limited VMA trading rules. However, our new design, which can display all results using Heatmap Visualization, shows that the NASDAQ100 index outperforms the DJ30 index and that weekly data outperforms daily data when measured by annualized return. These findings may be useful to those who trade index ETFs tracking the DJ30 and NASDAQ100 indices, as well as investors making investment decisions, and may contribute to the existing literature by evaluating the outcomes of VMA trading rules and providing insights for index ETF investors using a heatmap matrix, which is rarely explored and presented in the relevant literature.

Copyright: © 2023 Chen et al. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

Grants and funding

Min-Yuh Day has really appreciated the financial support provided by the Ministry of Science and Technology (MOST), Taiwan (110-2410-H-305-013-MY2), the National Taipei University (NTPU), Taiwan (111-NTPU_ORDA-F-001), and the National Taipei University (NTPU), Taiwan (111-NTPU_ORDA-F-003). The funders had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript.