For example, if you generated a bin from −10% to −5%, the histogram would give you the number of return observations that fall within that range in the sample. You can (but don’t have to) specify your own bins (the “ Bin Range“) for the histogram. You’ll then have to specify the “ Input Range“, which are the cells in which the stock returns are stored. Once you click on the Data Analysis box, choose the “ Histogram” tool. Otherwise, the Data Analysis box would not appear under the Data tab. Note that if you haven’t used Data Analysis before, you need to make sure that the “ Analysis ToolPak“, which is an Excel add-in, is enabled. To plot a histogram in Excel, you need to go to the “ Data” tab and then click on the “ Data Analysis” box. We will be working with the monthly returns of two US stocks: Microsoft (MSFT) and Kellogg (K). Creating histograms with other statistical software Using Excel’s “data analysis” tool to plot a histogram.Interpreting histograms of stock returns.Moreover, we will explain how to interpret a histogram of stock returns. In this tutorial, we will teach you how to create a histogram using Excel. An easy way to visualize the distribution of stock returns is to plot a histogram.
