Random Walk is a simulation where a succession of random steps are used to represent an apparently random event. The interesting thing is that we can use this kind of simulation to see different outputs from a certain event by controlling the start point of the simulation and the probability distribution of the random steps. Like all simulations, this is just a simplified model of the original phenomena. However, a simulation might be useful and is a powerful visualization tool. There are different notions of Random Walks using different implementations, with the most common being Brownian motion and the Binomial model. We will use these models to visualize the random path followed by stock prices through time.

In the following diagram, we can see simulated data from the Random Walk model for logged stock prices:

Brownian motion is a Random Walk model named after physicist Robert Brown, who observed molecules moving and colliding with one another in a random fashion...