Book Image

Python Machine Learning Cookbook

By : Prateek Joshi, Vahid Mirjalili
Book Image

Python Machine Learning Cookbook

By: Prateek Joshi, Vahid Mirjalili

Overview of this book

Machine learning is becoming increasingly pervasive in the modern data-driven world. It is used extensively across many fields such as search engines, robotics, self-driving cars, and more. With this book, you will learn how to perform various machine learning tasks in different environments. We’ll start by exploring a range of real-life scenarios where machine learning can be used, and look at various building blocks. Throughout the book, you’ll use a wide variety of machine learning algorithms to solve real-world problems and use Python to implement these algorithms. You’ll discover how to deal with various types of data and explore the differences between machine learning paradigms such as supervised and unsupervised learning. We also cover a range of regression techniques, classification algorithms, predictive modeling, data visualization techniques, recommendation engines, and more with the help of real-world examples.
Table of Contents (19 chapters)
Python Machine Learning Cookbook
Credits
About the Author
About the Reviewer
www.PacktPub.com
Preface
Index

Finding patterns in stock market data


Let's see how we can use unsupervised learning for stock market analysis. We will operate with the assumption that we don't know how many clusters there are. As we don't know the number of clusters, we will use an algorithm called Affinity Propagation to cluster. It tries to find a representative datapoint for each cluster in our data. It tries to find measures of similarity between pairs of datapoints and considers all our datapoints as potential representatives, also called exemplars, of their respective clusters. You can learn more about it at http://www.cs.columbia.edu/~delbert/docs/DDueck-thesis_small.pdf

In this recipe, we will analyze the stock market variations of companies in a specified duration of time. Our goal is to then find out what companies behave similarly in terms of their quotes over time.

How to do it…

  1. The full code for this recipe is given in the stock_market.py file that's already provided to you. Let's look at how it's built. Create...