Book Image

Practical Data Analysis - Second Edition

By : Hector Cuesta, Dr. Sampath Kumar
Book Image

Practical Data Analysis - Second Edition

By: Hector Cuesta, Dr. Sampath Kumar

Overview of this book

Beyond buzzwords like Big Data or Data Science, there are a great opportunities to innovate in many businesses using data analysis to get data-driven products. Data analysis involves asking many questions about data in order to discover insights and generate value for a product or a service. This book explains the basic data algorithms without the theoretical jargon, and you’ll get hands-on turning data into insights using machine learning techniques. We will perform data-driven innovation processing for several types of data such as text, Images, social network graphs, documents, and time series, showing you how to implement large data processing with MongoDB and Apache Spark.
Table of Contents (21 chapters)
Practical Data Analysis - Second Edition
Credits
About the Authors
About the Reviewers
www.PacktPub.com
Preface

Chapter 6. Simulation of Stock Prices

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