Book Image

Mastering Python for Finance - Second Edition

By : James Ma Weiming
Book Image

Mastering Python for Finance - Second Edition

By: James Ma Weiming

Overview of this book

The second edition of Mastering Python for Finance will guide you through carrying out complex financial calculations practiced in the industry of finance by using next-generation methodologies. You will master the Python ecosystem by leveraging publicly available tools to successfully perform research studies and modeling, and learn to manage risks with the help of advanced examples. You will start by setting up your Jupyter notebook to implement the tasks throughout the book. You will learn to make efficient and powerful data-driven financial decisions using popular libraries such as TensorFlow, Keras, Numpy, SciPy, and scikit-learn. You will also learn how to build financial applications by mastering concepts such as stocks, options, interest rates and their derivatives, and risk analytics using computational methods. With these foundations, you will learn to apply statistical analysis to time series data, and understand how time series data is useful for implementing an event-driven backtesting system and for working with high-frequency data in building an algorithmic trading platform. Finally, you will explore machine learning and deep learning techniques that are applied in finance. By the end of this book, you will be able to apply Python to different paradigms in the financial industry and perform efficient data analysis.
Table of Contents (16 chapters)
Free Chapter
1
Section 1: Getting Started with Python
3
Section 2: Financial Concepts
9
Section 3: A Hands-On Approach

Machine Learning for Finance

Machine learning is being rapidly adopted for a range of applications in the financial services industry. The adoption of machine learning in financial services has been driven by both supply factors, such as technological advances in data storage, algorithms, and computing infrastructure, and by demand factors, such as profitability needs, competition with other firms, and supervisory and regulatory requirements. Machine learning in finance includes algorithmic trading, portfolio management, insurance underwriting, and fraud detection, just to name a few subject areas.

There are several types of machine learning algorithms, but the two main ones that you will commonly come across in machine learning literature are supervised and unsupervised machine learning. Our discussion in this chapter focuses on supervised learning. Supervised machine learning...