05_04_begin.ipynb

{
 "cells": [
  {
   "cell_type": "markdown",
   "id": "fba5b622",
   "metadata": {},
   "source": [
    "## Calculate yearly stock price returns"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 1,
   "id": "29452d05",
   "metadata": {},
   "outputs": [],
   "source": [
    "import pandas as pd"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 4,
   "id": "12cd9f70",
   "metadata": {},
   "outputs": [
    {
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       "  <thead>\n",
       "    <tr style=\"text-align: right;\">\n",
       "      <th></th>\n",
       "      <th>AAPL</th>\n",
       "      <th>MSFT</th>\n",
       "      <th>XOM</th>\n",
       "      <th>SPX</th>\n",
       "    </tr>\n",
       "  </thead>\n",
       "  <tbody>\n",
       "    <tr>\n",
       "      <th>2003-01-02</th>\n",
       "      <td>7.40</td>\n",
       "      <td>21.11</td>\n",
       "      <td>29.22</td>\n",
       "      <td>909.03</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2003-01-03</th>\n",
       "      <td>7.45</td>\n",
       "      <td>21.14</td>\n",
       "      <td>29.24</td>\n",
       "      <td>908.59</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2003-01-06</th>\n",
       "      <td>7.45</td>\n",
       "      <td>21.52</td>\n",
       "      <td>29.96</td>\n",
       "      <td>929.01</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2003-01-07</th>\n",
       "      <td>7.43</td>\n",
       "      <td>21.93</td>\n",
       "      <td>28.95</td>\n",
       "      <td>922.93</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2003-01-08</th>\n",
       "      <td>7.28</td>\n",
       "      <td>21.31</td>\n",
       "      <td>28.83</td>\n",
       "      <td>909.93</td>\n",
       "    </tr>\n",
       "  </tbody>\n",
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      ],
      "text/plain": [
       "            AAPL   MSFT    XOM     SPX\n",
       "2003-01-02  7.40  21.11  29.22  909.03\n",
       "2003-01-03  7.45  21.14  29.24  908.59\n",
       "2003-01-06  7.45  21.52  29.96  929.01\n",
       "2003-01-07  7.43  21.93  28.95  922.93\n",
       "2003-01-08  7.28  21.31  28.83  909.93"
      ]
     },
     "execution_count": 4,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "stocks = pd.read_csv(\"./data/stock_data.csv\",\n",
    "                index_col=\"Unnamed: 0\",\n",
    "                parse_dates=True)\n",
    "\n",
    "stocks.head()"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 5,
   "id": "99bff4b2",
   "metadata": {},
   "outputs": [
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       "      <th>AAPL</th>\n",
       "      <th>MSFT</th>\n",
       "      <th>XOM</th>\n",
       "      <th>SPX</th>\n",
       "    </tr>\n",
       "  </thead>\n",
       "  <tbody>\n",
       "    <tr>\n",
       "      <th>2003-01-02</th>\n",
       "      <td>7.40</td>\n",
       "      <td>21.11</td>\n",
       "      <td>29.22</td>\n",
       "      <td>909.03</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2003-01-03</th>\n",
       "      <td>7.45</td>\n",
       "      <td>21.14</td>\n",
       "      <td>29.24</td>\n",
       "      <td>908.59</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2003-01-06</th>\n",
       "      <td>7.45</td>\n",
       "      <td>21.52</td>\n",
       "      <td>29.96</td>\n",
       "      <td>929.01</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2003-01-07</th>\n",
       "      <td>7.43</td>\n",
       "      <td>21.93</td>\n",
       "      <td>28.95</td>\n",
       "      <td>922.93</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2003-01-08</th>\n",
       "      <td>7.28</td>\n",
       "      <td>21.31</td>\n",
       "      <td>28.83</td>\n",
       "      <td>909.93</td>\n",
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       "    <tr>\n",
       "      <th>...</th>\n",
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       "      <td>...</td>\n",
       "      <td>...</td>\n",
       "      <td>...</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2011-10-10</th>\n",
       "      <td>388.81</td>\n",
       "      <td>26.94</td>\n",
       "      <td>76.28</td>\n",
       "      <td>1194.89</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2011-10-11</th>\n",
       "      <td>400.29</td>\n",
       "      <td>27.00</td>\n",
       "      <td>76.27</td>\n",
       "      <td>1195.54</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2011-10-12</th>\n",
       "      <td>402.19</td>\n",
       "      <td>26.96</td>\n",
       "      <td>77.16</td>\n",
       "      <td>1207.25</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2011-10-13</th>\n",
       "      <td>408.43</td>\n",
       "      <td>27.18</td>\n",
       "      <td>76.37</td>\n",
       "      <td>1203.66</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2011-10-14</th>\n",
       "      <td>422.00</td>\n",
       "      <td>27.27</td>\n",
       "      <td>78.11</td>\n",
       "      <td>1224.58</td>\n",
       "    </tr>\n",
       "  </tbody>\n",
       "</table>\n",
       "<p>2214 rows × 4 columns</p>\n",
       "</div>"
      ],
      "text/plain": [
       "              AAPL   MSFT    XOM      SPX\n",
       "2003-01-02    7.40  21.11  29.22   909.03\n",
       "2003-01-03    7.45  21.14  29.24   908.59\n",
       "2003-01-06    7.45  21.52  29.96   929.01\n",
       "2003-01-07    7.43  21.93  28.95   922.93\n",
       "2003-01-08    7.28  21.31  28.83   909.93\n",
       "...            ...    ...    ...      ...\n",
       "2011-10-10  388.81  26.94  76.28  1194.89\n",
       "2011-10-11  400.29  27.00  76.27  1195.54\n",
       "2011-10-12  402.19  26.96  77.16  1207.25\n",
       "2011-10-13  408.43  27.18  76.37  1203.66\n",
       "2011-10-14  422.00  27.27  78.11  1224.58\n",
       "\n",
       "[2214 rows x 4 columns]"
      ]
     },
     "execution_count": 5,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "stocks"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 6,
   "id": "e4791f69",
   "metadata": {},
   "outputs": [
    {
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       "      <th></th>\n",
       "      <th>AAPL</th>\n",
       "      <th>MSFT</th>\n",
       "      <th>XOM</th>\n",
       "      <th>SPX</th>\n",
       "    </tr>\n",
       "  </thead>\n",
       "  <tbody>\n",
       "    <tr>\n",
       "      <th>2003-01-03</th>\n",
       "      <td>0.006757</td>\n",
       "      <td>0.001421</td>\n",
       "      <td>0.000684</td>\n",
       "      <td>-0.000484</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2003-01-06</th>\n",
       "      <td>0.000000</td>\n",
       "      <td>0.017975</td>\n",
       "      <td>0.024624</td>\n",
       "      <td>0.022474</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2003-01-07</th>\n",
       "      <td>-0.002685</td>\n",
       "      <td>0.019052</td>\n",
       "      <td>-0.033712</td>\n",
       "      <td>-0.006545</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2003-01-08</th>\n",
       "      <td>-0.020188</td>\n",
       "      <td>-0.028272</td>\n",
       "      <td>-0.004145</td>\n",
       "      <td>-0.014086</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2003-01-09</th>\n",
       "      <td>0.008242</td>\n",
       "      <td>0.029094</td>\n",
       "      <td>0.021159</td>\n",
       "      <td>0.019386</td>\n",
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       "    <tr>\n",
       "      <th>2011-10-10</th>\n",
       "      <td>0.051406</td>\n",
       "      <td>0.026286</td>\n",
       "      <td>0.036977</td>\n",
       "      <td>0.034125</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2011-10-11</th>\n",
       "      <td>0.029526</td>\n",
       "      <td>0.002227</td>\n",
       "      <td>-0.000131</td>\n",
       "      <td>0.000544</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2011-10-12</th>\n",
       "      <td>0.004747</td>\n",
       "      <td>-0.001481</td>\n",
       "      <td>0.011669</td>\n",
       "      <td>0.009795</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2011-10-13</th>\n",
       "      <td>0.015515</td>\n",
       "      <td>0.008160</td>\n",
       "      <td>-0.010238</td>\n",
       "      <td>-0.002974</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2011-10-14</th>\n",
       "      <td>0.033225</td>\n",
       "      <td>0.003311</td>\n",
       "      <td>0.022784</td>\n",
       "      <td>0.017380</td>\n",
       "    </tr>\n",
       "  </tbody>\n",
       "</table>\n",
       "<p>2213 rows × 4 columns</p>\n",
       "</div>"
      ],
      "text/plain": [
       "                AAPL      MSFT       XOM       SPX\n",
       "2003-01-03  0.006757  0.001421  0.000684 -0.000484\n",
       "2003-01-06  0.000000  0.017975  0.024624  0.022474\n",
       "2003-01-07 -0.002685  0.019052 -0.033712 -0.006545\n",
       "2003-01-08 -0.020188 -0.028272 -0.004145 -0.014086\n",
       "2003-01-09  0.008242  0.029094  0.021159  0.019386\n",
       "...              ...       ...       ...       ...\n",
       "2011-10-10  0.051406  0.026286  0.036977  0.034125\n",
       "2011-10-11  0.029526  0.002227 -0.000131  0.000544\n",
       "2011-10-12  0.004747 -0.001481  0.011669  0.009795\n",
       "2011-10-13  0.015515  0.008160 -0.010238 -0.002974\n",
       "2011-10-14  0.033225  0.003311  0.022784  0.017380\n",
       "\n",
       "[2213 rows x 4 columns]"
      ]
     },
     "execution_count": 6,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "##calculate daily return\n",
    "\n",
    "rets = stocks.pct_change().dropna()\n",
    "rets"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 8,
   "id": "f2194d0a",
   "metadata": {},
   "outputs": [
    {
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       "  <thead>\n",
       "    <tr style=\"text-align: right;\">\n",
       "      <th></th>\n",
       "      <th>AAPL</th>\n",
       "      <th>MSFT</th>\n",
       "      <th>XOM</th>\n",
       "      <th>SPX</th>\n",
       "    </tr>\n",
       "  </thead>\n",
       "  <tbody>\n",
       "    <tr>\n",
       "      <th>2003</th>\n",
       "      <td>43.584872</td>\n",
       "      <td>6.898664</td>\n",
       "      <td>18.771676</td>\n",
       "      <td>21.552070</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2004</th>\n",
       "      <td>118.442218</td>\n",
       "      <td>10.185021</td>\n",
       "      <td>25.943358</td>\n",
       "      <td>9.226193</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2005</th>\n",
       "      <td>87.945329</td>\n",
       "      <td>0.095162</td>\n",
       "      <td>13.837245</td>\n",
       "      <td>3.483644</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2006</th>\n",
       "      <td>23.832396</td>\n",
       "      <td>16.859259</td>\n",
       "      <td>34.845801</td>\n",
       "      <td>13.269720</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2007</th>\n",
       "      <td>91.965795</td>\n",
       "      <td>21.529358</td>\n",
       "      <td>24.568472</td>\n",
       "      <td>4.740316</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2008</th>\n",
       "      <td>-66.939672</td>\n",
       "      <td>-47.032987</td>\n",
       "      <td>-0.880614</td>\n",
       "      <td>-40.145891</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2009</th>\n",
       "      <td>96.233386</td>\n",
       "      <td>54.235841</td>\n",
       "      <td>-10.095848</td>\n",
       "      <td>24.783483</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2010</th>\n",
       "      <td>46.161592</td>\n",
       "      <td>-4.332628</td>\n",
       "      <td>11.263742</td>\n",
       "      <td>13.656375</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2011</th>\n",
       "      <td>29.584961</td>\n",
       "      <td>1.784256</td>\n",
       "      <td>10.903390</td>\n",
       "      <td>-0.663912</td>\n",
       "    </tr>\n",
       "  </tbody>\n",
       "</table>\n",
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      ],
      "text/plain": [
       "            AAPL       MSFT        XOM        SPX\n",
       "2003   43.584872   6.898664  18.771676  21.552070\n",
       "2004  118.442218  10.185021  25.943358   9.226193\n",
       "2005   87.945329   0.095162  13.837245   3.483644\n",
       "2006   23.832396  16.859259  34.845801  13.269720\n",
       "2007   91.965795  21.529358  24.568472   4.740316\n",
       "2008  -66.939672 -47.032987  -0.880614 -40.145891\n",
       "2009   96.233386  54.235841 -10.095848  24.783483\n",
       "2010   46.161592  -4.332628  11.263742  13.656375\n",
       "2011   29.584961   1.784256  10.903390  -0.663912"
      ]
     },
     "execution_count": 8,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "get_year = lambda x: x.year\n",
    "by_year_stocks = rets.groupby(get_year).sum()*100\n",
    "by_year_stocks"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": null,
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