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Tidy Finance with Python

Christoph Scheuch, Stefan Voigt, Patrick Weiss, Christoph Frey

262 Pages
2024

Tidy Finance with Python

CRC Press

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Tidy Finance with Python - Summary

This groundbreaking textbook bridges the gap between theoretical finance and practical implementation using Python programming. It serves as a comprehensive guide for researchers, students, and finance professionals who want to conduct empirical financial research using modern data analysis techniques. The book uniquely combines financial theory with hands-on coding, covering everything from basic data manipulation to advanced machine learning applications in finance.

Key Ideas

1

Data-Driven Financial Research Revolution

The book revolutionizes how we approach financial research by introducing tidy data principles and reproducible coding practices. It demonstrates how to transform raw financial data from various sources into clean, analyzable formats using pandas and numpy, establishing a robust foundation for sophisticated financial analysis.

2

From Theory to Implementation

Rather than simply explaining financial concepts, the book shows how to implement them programmatically. Each chapter walks readers through practical applications of financial theories, from basic portfolio analysis to complex asset pricing models, ensuring readers gain both theoretical understanding and practical coding skills.

3

Modern Machine Learning in Finance

The book masterfully integrates cutting-edge machine learning techniques with traditional financial analysis. It explains how to leverage scikit-learn for tasks like factor selection, risk assessment, and portfolio optimization, demonstrating the practical applications of AI in modern finance.

FAQ's

While basic Python familiarity is helpful, the book is structured to accommodate various skill levels. It starts with fundamental concepts and progressively builds to more complex applications, making it accessible for beginners while remaining valuable for experienced programmers.

The book is highly practical, using real financial datasets (CRSP, Compustat, etc.) and providing reproducible code for every concept. Each chapter includes exercises and real-world examples that directly apply to financial research and analysis tasks.

This book's unique strength lies in its systematic approach to combining financial theory with modern programming practices. It emphasizes reproducibility and clean coding while covering a comprehensive range of topics from basic data manipulation to advanced machine learning applications in finance.

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