Python in Financial Analysis – Quantitative trading, stock prediction models, and risk management.
Python has become the dominant language in quantitative finance and financial analysis due to its simplicity, extensive ecosystem of libraries, and rapid prototyping capabilities. It is the go-to tool for tasks ranging from data ingestion to building and backtesting complex trading algorithms. 1. Quantitative Trading Quantitative trading (or algorithmic trading) heavily relies on Python for processing large datasets, modeling strategies, and automating execution. Task Key Python Libraries Description Data Handling Pandas , NumPy , yfinance Pandas provides DataFrames for time-series data manipulation (stock prices, volumes), essential for calculating indicators and cleaning market data. NumPy handles high-performance numerical operations. Strategy Development TA-Lib , pandas-ta These libraries offer a vast collection of technical analysis indicators (like Moving Averages, RSI, MACD, Bollinger Bands) used to generate buy/sell signals. Backtesting Zipline , Backtrader , Vectorbt These f...