Compare the performance of several asset classes
You have seen in the video how you can easily compare several time series by normalizing their starting points to 100, and plot the result.
To broaden your perspective on financial markets, let's compare four key assets: stocks, bonds, gold, and oil.
This exercise is part of the course
Manipulating Time Series Data in Python
Exercise instructions
We have already imported pandas
as pd
and matplotlib.pyplot
as plt
.
- Import
'asset_classes.csv'
, using.read_csv()
to parse dates in the'DATE'
column and set this column as the index, then assign the result toprices
. - Select the first price for each series using
.iloc[0]
onprices
and assign the result tofirst_prices
. - Divide
prices
byfirst_prices
, multiply by 100 and assign the result tonormalized
. - Plot
normalized
.
Hands-on interactive exercise
Have a go at this exercise by completing this sample code.
# Import data here
prices = ____
# Inspect prices here
print(____)
# Select first prices
first_prices = ____
# Create normalized
normalized = ____
# Plot normalized