Book Image

Python Machine Learning By Example - Third Edition

By : Yuxi (Hayden) Liu
Book Image

Python Machine Learning By Example - Third Edition

By: Yuxi (Hayden) Liu

Overview of this book

Python Machine Learning By Example, Third Edition serves as a comprehensive gateway into the world of machine learning (ML). With six new chapters, on topics including movie recommendation engine development with Naïve Bayes, recognizing faces with support vector machine, predicting stock prices with artificial neural networks, categorizing images of clothing with convolutional neural networks, predicting with sequences using recurring neural networks, and leveraging reinforcement learning for making decisions, the book has been considerably updated for the latest enterprise requirements. At the same time, this book provides actionable insights on the key fundamentals of ML with Python programming. Hayden applies his expertise to demonstrate implementations of algorithms in Python, both from scratch and with libraries. Each chapter walks through an industry-adopted application. With the help of realistic examples, you will gain an understanding of the mechanics of ML techniques in areas such as exploratory data analysis, feature engineering, classification, regression, clustering, and NLP. By the end of this ML Python book, you will have gained a broad picture of the ML ecosystem and will be well-versed in the best practices of applying ML techniques to solve problems.
Table of Contents (17 chapters)
15
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16
Index

Mining stock price data

In theory, we can apply regression techniques to predicting prices of a particular stock. However, it's difficult to ensure the stock we pick is suitable for learning purposes—its price should follow some learnable patterns and it can't have been affected by unprecedented instances or irregular events. Hence, we'll herein be focusing on one of the most popular stock indexes to better illustrate and generalize our price regression approach.

Let's first cover what an index is. A stock index is a statistical measure of the value of a portion of the overall stock market. An index includes several stocks that are diverse enough to represent a section of the whole market. And the price of an index is typically computed as the weighted average of the prices of selected stocks.

The Dow Jones Industrial Average (DJIA) is one of the longest established and most commonly watched indexes in the world...