Hello everyone,
As part of my bachelor thesis, I am trying to prove herd behavior on the basis of the German stock market. I am using stocks from the DAX. I have already succeeded in achieving results with this regression equation.
However, I would also like to prove whether the investor tends towards herd behavior in a rising and falling market. This adapted regression formula is available for this purpose:
However, I lack the certain knowledge how to apply this equation in rStudio and if it works at all in rStudio. I would be very grateful for any help.