Book Image

Python for Finance

By : Yuxing Yan
Book Image

Python for Finance

By: Yuxing Yan

Overview of this book

A hands-on guide with easy-to-follow examples to help you learn about option theory, quantitative finance, financial modeling, and time series using Python. Python for Finance is perfect for graduate students, practitioners, and application developers who wish to learn how to utilize Python to handle their financial needs. Basic knowledge of Python will be helpful but knowledge of programming is necessary.
Table of Contents (14 chapters)
13
Index

Presenting both closing price and trading volume

Sometimes, we like to view both price movement and trading volumes simultaneously. The following program accomplishes this:

>>>from pylab import plotfile, show
>>>import matplotlib.finance as finance
>>>ticker = 'IBM'
>>>begdate = datetime.date(2013,1,1)
>>>enddate = datetime.date.today()
>>>x= finance.fetch_historical_yahoo(ticker, begdate, enddate)
>>>plotfile(x, (0,6,5))
>>>show()

The output graph is shown as follows:

Presenting both closing price and trading volume

Adding mathematical formulae to our graph

In finance, we use many mathematical formulae. Occasionally, we need to add a mathematical formula to our figure. A set of formulae for a call option by using the matplotlib module is shown in the following program:

import numpy as np
import matplotlib.mathtext as mathtext
import matplotlib.pyplot as plt
import matplotlib
matplotlib.rc('image', origin='upper')
parser = mathtext.MathTextParser...