Course Name: Volatility Trading Strategies for Beginners, Section No: 21, Unit No: 7, Unit type: Notebook
Hello, I don't fully understand what this line means:
analytics['returns'] = (test.iloc[-1]/test.iloc[0]-1)*100
Can you explain in detail please? I know it's related to the computation of returns in test data but I don't see how it's working.
Hello Daniel,
The provided line of code calculates the percentage returns for the time series dataset stored in the 'test' DataFrame.
It determines the relative change between the last and first observations in the 'test' DataFrame, subtracts 1 to obtain the percentage change, and then multiplies the result by 100 to express the returns as a percentage.
The resulting returns are then stored in a new column named 'returns' within the 'analytics' DataFrame. This is a common method for assessing the performance or growth of an investment or variable over a specific period.
I hope this is clear now. Please let us know if you have any additional queries.
Got it, thanks!