Explore advanced financial models used by the industry and ways of solving them using Python
Build state-of-the-art infrastructure for modeling, visualization, trading, and more
Empower your financial applications by applying machine learning and deep learning

Description

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.

What you will learn

Solve linear and nonlinear models representing various financial problems Perform principal component analysis on the DOW index and its components Analyze, predict, and forecast stationary and non-stationary time series processes Create an event-driven backtesting tool and measure your strategies Build a high-frequency algorithmic trading platform with Python Replicate the CBOT VIX index with SPX options for studying VIX-based strategies Perform regression-based and classification-based machine learning tasks for prediction Use TensorFlow and Keras in deep learning neural network architecture

What do you get with Print?

Instant access to your digital eBook copy whilst your Print order is Shipped

Black & white paperback book shipped to your address

Download this book in EPUB and PDF formats

Access this title in our online reader with advanced features

DRM FREE - Read whenever, wherever and however you want

Buy Now

Product Details

Publication date : Apr 30, 2019

Length 426 pages

Edition : 2nd Edition

Language : English

ISBN-13 : 9781789346466

Category :

Data

Languages :

Python (Intermediate)

Concepts :

Financial Technology

Tools :

TensorFlow (Beginner)

16 Chapters

Preface

Who this book is for

What this book covers

To get the most out of this book

Get in touch

Section 1: Getting Started with Python

Overview of Financial Analysis with Python

Getting Python

Introduction to Quandl

Plotting a time series chart

Performing financial analytics on time series data

Summary

Section 2: Financial Concepts

The Importance of Linearity in Finance

The Capital Asset Pricing Model and the security market line

The Arbitrage Pricing Theory model

Multivariate linear regression of factor models

Linear optimization

Solving linear equations using matrices

The LU decomposition

The Cholesky decomposition

The QR decomposition

Solving with other matrix algebra methods

Summary

Nonlinearity in Finance

Nonlinearity modeling

Root-finding algorithms

SciPy implementations in root-finding

Summary

Numerical Methods for Pricing Options

Introduction to options

Binomial trees in option pricing

Pricing European options

Writing the StockOption base class

The Greeks for free

Trinomial trees in option pricing

Lattices in option pricing

Finite differences in option pricing

Putting it all together – implied volatility modeling

Summary

Modeling Interest Rates and Derivatives

Fixed-income securities

Yield curves

Valuing a zero-coupon bond

Bootstrapping a yield curve

Forward rates

Calculating the yield to maturity

Calculating the price of a bond

Pricing a callable bond option

Summary

Statistical Analysis of Time Series Data

The Dow Jones industrial average and its 30 components

Applying a kernel PCA

Stationary and non-stationary time series

The Augmented Dickey-Fuller Test

Analyzing a time series with trends

Making a time series stationary

Forecasting and predicting a time series

Summary

Section 3: A Hands-On Approach

Interactive Financial Analytics with the VIX

Volatility derivatives

Financial analytics of the S&P 500 and the VIX

Calculating the VIX Index

Summary

Building an Algorithmic Trading Platform

Introducing algorithmic trading

Building an algorithmic trading platform

Building a mean-reverting algorithmic trading system

Building a trend-following trading platform

VaR for risk management

Summary

Implementing a Backtesting System

Introducing backtesting

Designing and implementing a backtesting system

Ten considerations for a backtesting model

Discussion of algorithms in backtesting

Summary

Machine Learning for Finance

Introduction to machine learning

Predicting prices with a single-asset regression model

Predicting returns with a cross-asset momentum model

Predicting trends with classification-based machine learning

Conclusion on the use of machine learning algorithms

Summary

Deep Learning for Finance

A brief introduction to deep learning

A deep learning price prediction model with TensorFlow

Credit card payment default prediction with Keras

Summary

Other Books You May Enjoy

Leave a review - let other readers know what you think

Recommendations for you

Microsoft Defender for Endpoint in Depth: Take any organization's endpoint security to the next level

Mar 2023 362

eBook

$27.98 ~~$39.99~~

CompTIA Security+: SY0-601 Certification Guide: Complete coverage of the new CompTIA Security+ (SY0-601) exam to help you pass on the first attempt, Second Edition

Dec 2020 550

eBook

$16.99 ~~$24.99~~

Mastering Linux Security and Hardening: A practical guide to protecting your Linux system from cyber attacks, Third Edition

Feb 2023 618

eBook

$27.98 ~~$39.99~~

The Ultimate Kali Linux Book: Perform advanced penetration testing using Nmap, Metasploit, Aircrack-ng, and Empire, Second Edition

Feb 2022 742

eBook

$29.99 ~~$43.99~~

Effective Threat Investigation for SOC Analysts: The ultimate guide to examining various threats and attacker techniques using security logs

Aug 2023 314

eBook

$29.99 ~~$43.99~~

Keycloak - Identity and Access Management for Modern Applications: Harness the power of Keycloak, OpenID Connect, and OAuth 2.0 to secure applications, Second Edition

Jul 2023 350

eBook

$29.99 ~~$43.99~~

Practical Threat Detection Engineering: A hands-on guide to planning, developing, and validating detection capabilities

Jul 2023 328

eBook

$32.99 ~~$47.99~~

Mastering Microsoft 365 Defender: Implement Microsoft Defender for Endpoint, Identity, Cloud Apps, and Office 365 and respond to threats

Jul 2023 572

eBook

$27.98 ~~$39.99~~

CompTIA CASP+ CAS-004 Certification Guide: Develop CASP+ skills and learn all the key topics needed to prepare for the certification exam

Mar 2022 654

eBook

$27.98 ~~$39.99~~

Mastering Windows Server 2022: Comprehensive administration of your Windows Server environment, Fourth Edition

May 2023 720

eBook

$27.98 ~~$39.99~~

Customer reviews

Filter

Top Reviews

Rating distribution

(0 Ratings)

5 star 0%

4 star 0%

3 star 0%

2 star 0%

1 star 0%

No reviews found

People who bought this also bought

Privilege Escalation Techniques: Learn the art of exploiting Windows and Linux systems

Nov 2021 340

eBook

$29.99 ~~$43.99~~

The Ultimate Kali Linux Book: Perform advanced penetration testing using Nmap, Metasploit, Aircrack-ng, and Empire, Second Edition

Feb 2022 742

eBook

$29.99 ~~$43.99~~

Cybersecurity – Attack and Defense Strategies: Improve your security posture to mitigate risks and prevent attackers from infiltrating your system, Third Edition

Sep 2022 570

eBook

$22.99 ~~$33.99~~

Mastering Windows Security and Hardening: Secure and protect your Windows environment from cyber threats using zero-trust security principles, Second Edition

Aug 2022 816

eBook

$29.99 ~~$43.99~~

Cybersecurity Career Master Plan: Proven techniques and effective tips to help you advance in your cybersecurity career

Sep 2021 280

eBook

$27.98 ~~$39.99~~

Pentesting Web Applications: Testing real time web apps [Video]

Nov 2017

Video

$130.99

Authors (1)

James Ma

James Ma Weiming is a software engineer based in Singapore. His studies and research are focused on financial technology, machine learning, data sciences, and computational finance. James started his career in financial services working with treasury fixed income and foreign exchange products, and fund distribution. His interests in derivatives led him to Chicago, where he worked with veteran traders of the Chicago Board of Trade to devise high-frequency, low-latency strategies to game the market. He holds an MS degree in finance from Illinois Tech's Stuart School of Business in the United States and a bachelor's degree in computer engineering from Nanyang Technological University.

See other products by James Ma

FAQs

What is the delivery time and cost of print book?

Shipping Details

USA:

Economy: Delivery to most addresses in the US within 10-15 business days

Premium: Trackable Delivery to most addresses in the US within 3-8 business days

UK:

Economy: Delivery to most addresses in the U.K. within 7-9 business days.
Shipments are not trackable

Premium: Trackable delivery to most addresses in the U.K. within 3-4 business days!
Add one extra business day for deliveries to Northern Ireland and Scottish Highlands and islands

EU:

Premium: Trackable delivery to most EU destinations within 4-9 business days.

Australia:

Economy: Can deliver to P. O. Boxes and private residences.
Trackable service with delivery to addresses in Australia only.
Delivery time ranges from 7-9 business days for VIC and 8-10 business days for Interstate metro
Delivery time is up to 15 business days for remote areas of WA, NT & QLD.

Premium: Delivery to addresses in Australia only
Trackable delivery to most P. O. Boxes and private residences in Australia within 4-5 days based on the distance to a destination following dispatch.

India:

Premium: Delivery to most Indian addresses within 5-6 business days

Rest of the World:

Premium: Countries in the American continent: Trackable delivery to most countries within 4-7 business days

Asia:

Premium: Delivery to most Asian addresses within 5-9 business days

Disclaimer:
All orders received before 5 PM U.K time would start printing from the next business day. So the estimated delivery times start from the next day as well. Orders received after 5 PM U.K time (in our internal systems) on a business day or anytime on the weekend will begin printing the second to next business day. For example, an order placed at 11 AM today will begin printing tomorrow, whereas an order placed at 9 PM tonight will begin printing the day after tomorrow.

Unfortunately, due to several restrictions, we are unable to ship to the following countries:

Afghanistan
American Samoa
Belarus
Brunei Darussalam
Central African Republic
The Democratic Republic of Congo
Eritrea
Guinea-bissau
Iran
Lebanon
Libiya Arab Jamahriya
Somalia
Sudan
Russian Federation
Syrian Arab Republic
Ukraine
Venezuela

What is custom duty/charge?

Customs duty are charges levied on goods when they cross international borders. It is a tax that is imposed on imported goods. These duties are charged by special authorities and bodies created by local governments and are meant to protect local industries, economies, and businesses.

Do I have to pay customs charges for the print book order?

The orders shipped to the countries that are listed under EU27 will not bear custom charges. They are paid by Packt as part of the order.

List of EU27 countries: www.gov.uk/eu-eea:

A custom duty or localized taxes may be applicable on the shipment and would be charged by the recipient country outside of the EU27 which should be paid by the customer and these duties are not included in the shipping charges been charged on the order.

How do I know my custom duty charges?

The amount of duty payable varies greatly depending on the imported goods, the country of origin and several other factors like the total invoice amount or dimensions like weight, and other such criteria applicable in your country.

For example:

If you live in Mexico, and the declared value of your ordered items is over $ 50, for you to receive a package, you will have to pay additional import tax of 19% which will be $ 9.50 to the courier service.
Whereas if you live in Turkey, and the declared value of your ordered items is over € 22, for you to receive a package, you will have to pay additional import tax of 18% which will be € 3.96 to the courier service.

How can I cancel my order?

Cancellation Policy for Published Printed Books:

You can cancel any order within 1 hour of placing the order. Simply contact customercare@packt.com with your order details or payment transaction id. If your order has already started the shipment process, we will do our best to stop it. However, if it is already on the way to you then when you receive it, you can contact us at customercare@packt.com using the returns and refund process.

Please understand that Packt Publishing cannot provide refunds or cancel any order except for the cases described in our Return Policy (i.e. Packt Publishing agrees to replace your printed book because it arrives damaged or material defect in book), Packt Publishing will not accept returns.

What is your returns and refunds policy?

Return Policy:

We want you to be happy with your purchase from Packtpub.com. We will not hassle you with returning print books to us. If the print book you receive from us is incorrect, damaged, doesn't work or is unacceptably late, please contact Customer Relations Team on customercare@packt.com with the order number and issue details as explained below:

If you ordered (eBook, Video or Print Book) incorrectly or accidentally, please contact Customer Relations Team on customercare@packt.com within one hour of placing the order and we will replace/refund you the item cost.
Sadly, if your eBook or Video file is faulty or a fault occurs during the eBook or Video being made available to you, i.e. during download then you should contact Customer Relations Team within 14 days of purchase on customercare@packt.com who will be able to resolve this issue for you.
You will have a choice of replacement or refund of the problem items.(damaged, defective or incorrect)
Once Customer Care Team confirms that you will be refunded, you should receive the refund within 10 to 12 working days.
If you are only requesting a refund of one book from a multiple order, then we will refund you the appropriate single item.
Where the items were shipped under a free shipping offer, there will be no shipping costs to refund.

On the off chance your printed book arrives damaged, with book material defect, contact our Customer Relation Team on customercare@packt.com within 14 days of receipt of the book with appropriate evidence of damage and we will work with you to secure a replacement copy, if necessary. Please note that each printed book you order from us is individually made by Packt's professional book-printing partner which is on a print-on-demand basis.

What tax is charged?

Currently, no tax is charged on the purchase of any print book (subject to change based on the laws and regulations). A localized VAT fee is charged only to our European and UK customers on eBooks, Video and subscriptions that they buy. GST is charged to Indian customers for eBooks and video purchases.

What payment methods can I use?

You can pay with the following card types:

Visa Debit
Visa Credit
MasterCard
PayPal

What is the delivery time and cost of print books?

Shipping Details

USA:

Economy: Delivery to most addresses in the US within 10-15 business days

Premium: Trackable Delivery to most addresses in the US within 3-8 business days

UK:

Economy: Delivery to most addresses in the U.K. within 7-9 business days.
Shipments are not trackable

Premium: Trackable delivery to most addresses in the U.K. within 3-4 business days!
Add one extra business day for deliveries to Northern Ireland and Scottish Highlands and islands

EU:

Premium: Trackable delivery to most EU destinations within 4-9 business days.

Australia:

India:

Premium: Delivery to most Indian addresses within 5-6 business days

Rest of the World:

Premium: Countries in the American continent: Trackable delivery to most countries within 4-7 business days

Asia:

Premium: Delivery to most Asian addresses within 5-9 business days

Unfortunately, due to several restrictions, we are unable to ship to the following countries:

Afghanistan
American Samoa
Belarus
Brunei Darussalam
Central African Republic
The Democratic Republic of Congo
Eritrea
Guinea-bissau
Iran
Lebanon
Libiya Arab Jamahriya
Somalia
Sudan
Russian Federation
Syrian Arab Republic
Ukraine
Venezuela

Mastering Python for Finance.: Implement advanced state-of-the-art financial statistical applications using Python, Second Edition

What do you get with Print?

Product Details

Mastering Python for Finance. - Second Edition

Section 1: Getting Started with Python

Page 1 of 1

Key benefits

Description

What you will learn

What do you get with Print?

Product Details

Table of Contents

Recommendations for you

Customer reviews

Filter reviews by

People who bought this also bought

Authors (1)

FAQs

Mastering Python for Finance.: Implement advanced state-of-the-art financial statistical applications using Python, Second Edition

What do you get with Print?

Product Details

Key benefits

Description

What you will learn

What do you get with Print?

Product Details

Packt Subscriptions

Table of Contents

Recommendations for you

Customer reviews

Filter reviews by

People who bought this also bought

Authors (1)

FAQs