Stock Duel: Python's Play in Comparative Market Analysis

Abstract

The provided Python code offers a comprehensive framework for conducting a comparative analysis of stocks in the financial market. Using the Yahoo Finance API, it fetches historical stock price data for specified stocks (e.g., Apple and Microsoft) within a defined timeframe. The script calculates and visualizes key metrics, including daily returns and cumulative returns, allowing users to assess the performance of selected stocks. Additionally, it conducts statistical analysis by computing mean returns, standard deviations, and correlation coefficients to quantify the relationship between these assets. The code also presents a risk-return analysis, showcasing a scatter plot that visualizes the risk and return trade-off for the selected stocks. This versatile tool serves as a foundation for more advanced financial analyses and portfolio optimization strategies, empowering investors and analysts to make informed decisions in the complex world of stock market investments.