Solution 10.1
Suppose you are an analyst in a financial advisory firm. Your manager has given three stock symbols to you and requested your input on how they may be correlated in their price behavior. You are provided with a data file called stocks.csv
, which contains the symbols, the closing prices, the trading volumes, and a sentiment indicator (some view of the stocks' quality, but you are not told the exact definition). Your initial goal here is to determine whether all three stocks show similar market characteristics, and if any or all of them do, make an initial visualization using smoothing. The long-term goal is to try to build some predictive models, so you will split the data into training and test sets. As it is a time series, it's important to split on time, not randomly. For this activity, all you will need is the pandas
library, a scaling module from sklearn
, and matplotlib
.
Perform the following steps to complete the activity:
- Load the required...