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Mastering Python for Finance

You're reading from   Mastering Python for Finance Understand, design, and implement state-of-the-art mathematical and statistical applications used in finance with Python

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Product type Paperback
Published in Apr 2015
Publisher Packt
ISBN-13 9781784394516
Length 340 pages
Edition 1st Edition
Languages
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Toc

Table of Contents (12) Chapters Close

Preface 1. Python for Financial Applications FREE CHAPTER 2. The Importance of Linearity in Finance 3. Nonlinearity in Finance 4. Numerical Procedures 5. Interest Rates and Derivatives 6. Interactive Financial Analytics with Python and VSTOXX 7. Big Data with Python 8. Algorithmic Trading 9. Backtesting 10. Excel with Python Index

Nonlinearity modeling


While linear relationships aim to explain observed phenomena in the simplest way possible, many complex physical phenomena cannot be explained using such models. A nonlinear relationship is defined as follows:

Even though nonlinear relationships may be complex, to fully understand and model them we will take a look at the examples that are applied in the context of finance and in time series models.

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