Python and Statistics for Financial Analysis

Pandas Knowledge

1. What does shift() in Pandas mean? shift(-1) means to move upwards by one row.

2. List Comprehension: fb['Direction']=[1 if fb[ei,'PriceDiff'] > 0 else -1 for ei in fb.index]

3. fb['MovingAverage] = (fb + fb.shift(1) + fb.shift(2)) / 3 Move downwards to get the previous data.

Financial Knowledge

PriceDiff = Close_Price_Of_Tomorrow - Close_Price_Of_Today

DailyReturn = PriceDiff / Close_Price_Of_Today

Direction :=

• PriceDiff $> 0 ====>$ Up 1
• PriceDiff $<= 0 ====>$ Down -1

MovingAverage = (Close_Price_Of_The_Day_Before_Yesterday + Close_Price_Of_Yesterday + Close_Price_Of_Today) / 3