Summary: Performing the risk/return analysis over time for india listed IT companies. There are many listed companies, but selected sample stocks for an anlysis.
Following are the steps to analyse financial stock price data
- Importing required python libraries
- Date range for the data for our analysis
- Selecting stock ticker symbol for performance review
- Importing stock price data from yahoo finance and stored in variable "stocks"
- Generally conduct analysis on Adjust Close price or Close price.
- Visualize the Adjusted Close of the stocks over time
- Bring the stocks price value to the same Base (100)
- Base price ploting to compare performance
- Calculating daily returns for selected stocks and create a new returns (daily/monthly returns) DataFrame
- Calculating the annualized mean return and the annualized standard deviation (Risk) of returns for selected stocks.
- Figure out the best-performing stocks are and the worst-performing stock (in terms of risk/return)