Calculating Stock price returns using python
Import the libraries
import pandas as pd
Load the data
# read the data
stock = pd.read_csv("stock.csv")
# display the first 5 rows data
stock.head()
We can see that we have the Daily Stock Price Closing Data.
Calculate the return
To calculate the 1-day returns, we need the previous closing price.
# shift the close prices by 1 position since we need 1-day previous close.
stock['previous_close'] = stock['close'].shift(1)
# display the data
stock.head()
Now that we have the Data in required format, we can calculate the daily returns.
# 1-day returns
stock['return'] = (stock['close'] / stock['previous_close']) - 1
# % return
stock['% return'] = stock['return'] * 100
# display the data
stock.head()