Book Image

Mastering Python for Finance

Book Image

Mastering Python for Finance

Overview of this book

Table of Contents (17 chapters)
Mastering Python for Finance
Credits
About the Author
About the Reviewers
www.PacktPub.com
Preface
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.