This chapter will walk you through a financial analysis project where you will analyze stock market data, determine whether stocks are over or under-valued, use this information to identify a list of target stocks that may make good investments, and visually analyze the price histories of the target stocks.
We must caution that the goal of this chapter is not to make you an expert in stock market analysis or to make you rich. Quants on Wall Street study engineering models that perform significantly more sophisticated operations than those we will touch upon here. Entire books have been written on stock market models and financial engineering, but we only have a single chapter to dedicate to this topic. So given the time and format constraints, the goals of this chapter will be:
- To get a basic understanding of the data that we will work with
- To find useful and interesting...
