The author Burton Malkiel proposed in his top-seller book A Random Walk Down Wall Street (1973) that a stock price will take a random path and that we cannot use historical data to predict stock future, due to its behavior being independent of other factors. The Random Walk theory may help us to simulate this kind of unpredictable path. In this chapter, we will implement a simulation of stock prices applying the Random Walk algorithm and implement it with a D3.js animation. This chapter will cover the following topics:
Financial time series
Random Walk simulation
Monte Carlo methods
Generating random numbers
Implementation in D3.js
Quantitative Analysts