dataset['adjustment'] = dataset['Adj Close']/dataset['Close']
dataset['Adj Open'] = dataset['adjustment'] * dataset['Open']
dataset['Adj High'] = dataset['adjustment'] * dataset['High']
dataset['Adj Low'] = dataset['adjustment'] * dataset['Low']
OHLCV_mean = dataset[['Adj Open','Adj High','Adj Low']].mean(axis = 1)
Hello Bhaskar,
We use the ratio of the adjusted close and close to get the adjustment factor. This factor needs to be used similarly on the raw open, high, low prices as well - just like it is used on the close to get the adjusted close. This is so that all price series in OHLC is adjusted for corporate actions like merger and stock splits. This is done in order to make sure that the value of the asset is comparable across all days and we are talking about the same quantity of the asset.