Chapter 10. Modeling Stock Data

Automated stock analysis has gotten a lot of press recently. High-frequency trading firms are a flashpoint. People either believe that they're great for the markets and increasing liquidity, or that they're precursors to the apocalypse. Smaller traders have also gotten into the mix in a slower fashion. Some sites, such as Quantopian (https://www.quantopian.com/) and AlgoTrader (http://www.algotrader.ch/) provide services that allow you to create models for automated trading. Many others allow you to use automated analysis to inform your trading decisions.

Whatever your view of this phenomena, it's an area with a lot of data begging to be analyzed. It's also a nice domain in which to experiment with some analysis and machine learning techniques.

For this chapter, we're going to look for relationships between news articles and stock prices in the future.

In the course of this chapter, we will cover the following topics:

• Learn about financial data analysis

• Set up...