Chapter 6. Simulation of Stock Prices
The author Burton Malkiel proposed in his top-seller book A Random Walk Down Wall Street (1973) that a stock price will take a random path and that we cannot use historical data to predict stock future, due to its behavior being independent of other factors. The Random Walk theory may help us to simulate this kind of unpredictable path. In this chapter, we will implement a simulation of stock prices applying the Random Walk algorithm and implement it with a D3.js animation. This chapter will cover the following topics:
- Financial time series
- Random Walk simulation
- Monte Carlo methods
- Generating random numbers
- Implementation in D3.js
- Quantitative Analysts
Financial time series
Financial Time Series Analysis (FTSA
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