Stock market analysis
We will analyze stock market data in this section using HMMs. This is an example where the data is already organized and timestamped. We will use the dataset available in the matplotlib
package. The dataset contains the stock values of various companies over the years. HMMs are generative models that can analyze such time series data and extract the underlying structure. We will use this model to analyze stock price variations and generate the outputs.
Please do not expect that the results generated by this model will be anywhere near production quality and that you will be able to use this model to perform live trading and make money doing so. It will provide a foundation that can be used to start thinking about how this can be accomplished. If you are so inclined, we encourage you to continue to enhance the model and stress it against different datasets and perhaps use it with current market data. We do not make any representations about...