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stocks-analysis

Overview of Project

Background

We have created a workbook with VBA macros capable of calculating the total daily volume and year end return for every unique stock ticker. In this project our goal is to refactor our existing VBA macro so that it runs more efficiently. We will assess the different solutions and challenges we ran into when refactoring our code.

Purpose

Refactoring code is an extremely important skill. Often the first iteration of a solution is not always the most efficient or user friendly. Our goal is to streamline our program. Since currently we only are looking at dozen stock tickers, we want to make our code more robust and able to handle hundreds if not thousands of different tickers. Throughout or refactoring process we will compare run times to determine if our refactoring is effective or not. These run times are store in the Resources folder.

Results

Run Time Before Refactoring

2017 before Refactor 2018 before Refactor

As you can see our initial script is able to complete each request in just under a second. Now this may seem fast, but we must consider that we are only working with 12 unique tickers and a couple thousand lines of data. A more realistic data set will have at least 100 times more data to sort and analyze.

Our biggest time constraint is the nested for loops that fill and calculate our desired metrics

For i = 0 To 11

    ticker = tickers(i)
    totalVolume = 0
    Worksheets(yearvalue).Activate
    For j = 2 To RowCount
        
        '5a) Get total volume for current ticker
        If Cells(j, 1).Value = ticker Then
            totalVolume = totalVolume + Cells(j, 8).Value
        End If
        
        '5b) get starting price for current ticker
        If Cells(j, 1).Value = ticker And Cells(j - 1, 1).Value <> ticker Then
            startingPrice = Cells(j, 6).Value
        End If
        
        '5c) get ending price for current ticker
        If Cells(j, 1).Value = ticker And Cells((j + 1), 1).Value <> ticker Then
            endingPrice = Cells(j, 6).Value
        End If

    Next j
    Worksheets("AllStocksAnalysis").Activate
    Cells(4 + i, 1).Value = ticker
    Cells(4 + i, 2).Value = totalVolume
    Cells(4 + i, 3).Value = endingPrice / startingPrice - 1
    
Next i

'''

We are calculating Total Volume and Return for each ticker and then writing those variables within each outer loop. Taking the time every iteration of i to write the cell values is cumbersome. Especially since we are switching back and forth between two excel sheets. In our refactor we will look at a more seamless way to get the same result by creating arrays for the Volume, Starting Price, and Ending Price for all of tickers then writing to the after we have filled our arrays.

Run Time After Refactoring

2017 after Refactor 2018 after Refactor

After refactoring our script we were able to decrease our runtimes by approximately 10%! This could prove to be particularly useful moving forward if we wanted to analyze multiple years at a time or more unique tickers. We were able to save time by changing the way we stored and wrote our metrics for each ticker.

'1a) Create a ticker Index
tickIndex = 0

'1b) Create three output arrays
Dim tickerVolumes(12) As Long
Dim tickerStartingPrices(12) As Single
Dim tickerEndingPrices(12) As Single

'2a) Create a for loop to initialize the tickerVolumes to zero.
For j = 0 To 11
    tickerVolumes(tickIndex) = 0
    
''2b) Loop over all the rows in the spreadsheet.
    For i = 2 To RowCount
    
        '3a) Increase volume for current ticker
        If Cells(i, 1).Value = tickers(tickIndex) Then
        
            tickerVolumes(tickIndex) = tickerVolumes(tickIndex) + Cells(i, 8).Value
        
        End If
        
        '3b) Check if the current row is the first row with the selected tickerIndex.
        If Cells(i, 1).Value = tickers(tickIndex) And Cells(i - 1, 1).Value <> tickers(tickIndex) Then
            
            tickerStartingPrices(tickIndex) = Cells(i, 6).Value
            
        End If
        
        '3c) check if the current row is the last row with the selected ticker
         'If the next row’s ticker doesn’t match, increase the tickerIndex.
        
        If Cells(i, 1).Value = tickers(tickIndex) And Cells(i + 1, 1).Value <> tickers(tickIndex) Then
            
            tickerEndingPrices(tickIndex) = Cells(i, 6).Value

        End If
               
    Next i
    
    '3d Increase the tickerIndex.
    tickIndex = tickIndex + 1
    
Next j

In our refactor we initialize three empty arrays for each of the three metrics we will be outputting (Total Volume, Starting Price, Ending Price). We have also created an index variable, tickIndex. Our tickIndex tells us which ticker we are calculating values for currently. For example tickIndex = 0 means we are on the 0th index of tickers() or "AY". We use this index variable to sync our other three arrays, example: TotalVolume(0) = Total Volume for AY. Notice how we are not switching back and forth from our Data sheet and our Analysis sheet. This ends up saving a considerable amount of computing time.

Each time we complete the inner loop we have stored all three necessary values at the proper index. We then count up our tickIndex to move on to the next stock ticker in our tickers() array.

After we have completed our nested for loops operation, we then use a separate for loop to go back and write all of the values stored in our arrays to our excel sheet. We can see this in our code block below:

'4) Loop through your arrays to output the Ticker, Total Daily Volume, and Return.
For i = 0 To 11
    
    Worksheets("AllStocksAnalysis").Activate
    Cells(4 + i, 1).Value = tickers(i)
    Cells(4 + i, 2).Value = tickerVolumes(i)
    Cells(4 + i, 3).Value = tickerEndingPrices(i) / tickerStartingPrices(i) - 1
    
Next i

Since the indexes for all of our arrays our synced, then all of the corresponding values are related. For example, tickers(i) stores "AY" and tickerVolumes at index i stores the daily trading volume data for "AY".

Ultimately, our refactor proved to be successful as we were able to reduce our runtime and create a more flexible way to store our data.

Summary

Refactoring is something that every programmer will need to do at some point throughout their career. There can be both advantages and disadvantages when refactoring a piece or all of a code base.

Advantages to Refactoring in General

When solving problems through code, our first solution is rarely if ever perfect. Refactoring provides us with an opportunity to move and develop quickly. We can release and push hot fixes to problems we are trying to solve while having the ability to go back and refine them after release. This level of flexibility allows organizations of all sizes to implement change fast and effectively. The faster a company can respond to the challenges it faces then the more productive and adaptive their product/services can be.

A company that is able to quickly change and adjust to the changing forces around them allows them to withstand changes that may have put them out of business otherwise.

Refactoring is also an excellent way for an organization to train new engineers or developers on their respective code bases. Well documented code allows for new developers to familiarize themselves with the existing code base without requiring them to develop something from scratch.

Disadvantages to Refactoring in General

Refactoring can often cause unforeseen problems. As organizations and their respective code bases grow it is important to maintain pristine documentation. Without proper documentation, changes made can have harmful consequences. For example, if someone were to adjust the steps needed for a user to login without considering the dependencies in each step then they could in theory break the login process in production. When a company’s service or product is down due to develop error, they can lose thousands of dollars for every hour that it is down.

The old saying "If it isn’t broke, don't fix it” can be a hard truth to accept. If we are just trying to make cosmetic changes that don't have a real effect on performance, we may end up breaking something that once worked without issues. This can lead to hours of headaches and bug fixes.

Advantages to Refactoring our Script

When we refactored our VBA script, we were able to increase performance by nearly 10%. Now for a program that already took less than a second to run this may seem inconsequential but for a process that could time minutes if not hours this could potentially save days’ worth of computing power. This time saved translate to direct dollar savings for an organization. It will also allow for quicker analysis leading to more up to date decision making which may increase the likelihood of them making a more educated decision.

Disadvantages to Refactoring our Script

While we were able to refactor our script to run faster it, it did take a significant amount of time to decrease our run time by 10%. If this program was never going to scale beyond the data set, we were testing on then there may be little reason to spend the time refactoring it in the first place. Our refactor also still fails to account for a more dynamic data set. We had a hard coded number of stock tickers to work with in our data. If we were to look at a more robust market analysis, we would need to be able to handle any given number of stock tickers.

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VBA analysis of Stock data from 2017-18

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