Python practice

As mentioned in the introduction to this chapter, we are going to be using the statsmodels library for modeling.

Requirements

In this chapter, we'll use several libraries, which we can quickly install from the terminal (or similarly from the anaconda navigator):

pip install statsmodels pandas_datareader

We'll execute the commands from the Python (or IPython) terminal, but equally, we could execute them from a Jupyter notebook (or a different environment).

Let's get down to modeling!

Modeling in Python

We'll work with a stock ticker dataset from Yahoo finance that we'll download through the yfinance library. We'll first load the dataset, do some quick exploration, and then we'll build several models mentioned in this chapter.

We'll load a series of Standard & Poor's depositary receipts (SPDR S&P 500 ETF Trust):

from datetime import datetime
import yfinance as yf
  
start_date...