Browse Library
Sign In Start Free Trial
Close icon Search icon
Account
Browse Library Sign In Start Free Trial

Add to playlist

Create a Playlist

Modal Close icon
You need to login to use this feature.
  • Book Overview & Buying Mastering Python for Finance
  • Table Of Contents Toc
Mastering Python for Finance

Mastering Python for Finance

3.3 (7)
Buy this Book
close
close
Mastering Python for Finance

Mastering Python for Finance

3.3 (7)
Buy this Book

Overview of this book

If you are an undergraduate or graduate student, a beginner to algorithmic development and research, or a software developer in the financial industry who is interested in using Python for quantitative methods in finance, this is the book for you. It would be helpful to have a bit of familiarity with basic Python usage, but no prior experience is required.
Table of Contents (12 chapters)
close
close
close
Preface
Icon
Preface
Icon
What this book covers
Icon
What you need for this book
Icon
Who this book is for
Icon
Conventions
Icon
Reader feedback
Icon
Customer support
Lock Free Chapter
1
1. Python for Financial Applications
Icon
1. Python for Financial Applications
Icon
Is Python for me?
Icon
Objected-oriented versus functional programming
Icon
Which Python version should I use?
Icon
Introducing IPython
Icon
Summary
2
2. The Importance of Linearity in Finance
Icon
2. The Importance of Linearity in Finance
Icon
The capital asset pricing model and the security market line
Icon
The Arbitrage Pricing Theory model
Icon
Multivariate linear regression of factor models
Icon
Linear optimization
Icon
Solving linear equations using matrices
Icon
The LU decomposition
Icon
The Cholesky decomposition
Icon
The QR decomposition
Icon
Summary
3
3. Nonlinearity in Finance
Icon
3. Nonlinearity in Finance
Icon
Nonlinearity modeling
Icon
Examples of nonlinear models
Icon
An introduction to root-finding
Icon
Incremental search
Icon
The bisection method
Icon
Newton's method
Icon
The secant method
Icon
Combining root-finding methods
Icon
SciPy implementations
Icon
Summary
4
4. Numerical Procedures
Icon
4. Numerical Procedures
Icon
Introduction to options
Icon
Binomial trees in options pricing
Icon
The Greeks for free
Icon
Trinomial trees in options pricing
Icon
Lattices in options pricing
Icon
Finite differences in options pricing
Icon
Putting it all together – implied volatility modeling
Icon
Summary
5
5. Interest Rates and Derivatives
Icon
5. Interest Rates and Derivatives
Icon
Fixed-income securities
Icon
Yield curves
Icon
Valuing a zero-coupon bond
Icon
Bootstrapping a yield curve
Icon
Forward rates
Icon
Calculating the yield to maturity
Icon
Calculating the price of a bond
Icon
Bond duration
Icon
Bond convexity
Icon
Short-rate modeling
Icon
Bond options
Icon
Pricing a callable bond option
Icon
Summary
6
6. Interactive Financial Analytics with Python and VSTOXX
Icon
6. Interactive Financial Analytics with Python and VSTOXX
Icon
Volatility derivatives
Icon
Gathering the EUROX STOXX 50 Index and VSTOXX data
Icon
Merging the data
Icon
Financial analytics of SX5E and V2TX
Icon
Correlation between SX5E and V2TX
Icon
Calculating the VSTOXX sub-indices
Icon
Calculating the VSTOXX main index
Icon
Summary
7
7. Big Data with Python
chevron up
Icon
7. Big Data with Python
Icon
Introducing big data
Icon
Hadoop for big data
Icon
Is big data for me?
Icon
Getting Apache Hadoop
Icon
A word count program in Hadoop
Icon
Going deeper – Hadoop for finance
Icon
Introducing NoSQL
Icon
Summary
8
8. Algorithmic Trading
Icon
8. Algorithmic Trading
Icon
Introduction to algorithmic trading
Icon
List of trading platforms with public API
Icon
Which is the best programming language to use?
Icon
System functionalities
Icon
Algorithmic trading with Interactive Brokers and IbPy
Icon
Building a mean-reverting algorithmic trading system
Icon
Forex trading with OANDA API
Icon
Building a trend-following forex trading platform
Icon
VaR for risk management
Icon
Summary
9
9. Backtesting
Icon
9. Backtesting
Icon
An introduction to backtesting
Icon
Designing and implementing a backtesting system
Icon
Ten considerations for a backtesting model
Icon
Discussion of algorithms in backtesting
Icon
Summary
10
10. Excel with Python
Icon
10. Excel with Python
Icon
Overview of COM
Icon
Excel for finance
Icon
Building a COM server
Icon
Building the COM client in Excel
Icon
What else can I do with COM?
Icon
Summary
11
Index
Icon
Index

Summary

In this chapter, we were introduced to big data and its uses in finance. Big data tools provide the scalability and reliability of analyzing big data in the area of risk and credit analytics, handling data coming in from multiple sources. Apache Hadoop is one popular tool for financial institutions and enterprises in meeting these big data needs.

Apache Hadoop is an open source framework and written in Java. To help us get started quickly with Hadoop, we downloaded a QuickStart VM from Cloudera that comes with CentOS and Hadoop 2.0 running on VirtualBox. The main components in Hadoop are the HDFS file store, YARN, and MapReduce. We learned about Hadoop by writing a map and reduce program in Python to perform a word count on an e-book. Moving on, we downloaded a dataset of the daily prices of a stock and counted the number of percentage intraday price changes. The outputs were taken for further analysis.

Before we begin to manage big data, we will need an avenue to store this data....

CONTINUE READING
83
Tech Concepts
36
Programming languages
73
Tech Tools
Icon Unlimited access to the largest independent learning library in tech of over 8,000 expert-authored tech books and videos.
Icon Innovative learning tools, including AI book assistants, code context explainers, and text-to-speech.
Icon 50+ new titles added per month and exclusive early access to books as they are being written.
Mastering Python for Finance
End of Chapter 7
Next Chapter
notes
bookmark Notes and Bookmarks search Search in title playlist Add to playlist font-size Font size

Change the font size

margin-width Margin width

Change margin width

day-mode Day/Sepia/Night Modes

Change background colour

Close icon Search
Country selected
Close icon Your notes and bookmarks

Confirmation

Modal Close icon
claim successful
Order Page Read Now

Buy this book with your credits?

Modal Close icon
Are you sure you want to buy this book with one of your credits?
Close
YES, BUY

Submit Your Feedback

Modal Close icon
Modal Close icon
Modal Close icon