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Units and Comprehension

Hi all,

I was going through the motions of Quantopians "Notebook" tutorials but have a very slim background in quant finance and was wondering

How does one interpret the following seaborn generated distplot of the etf SLV? What are the axis' units. And what does one gather from this histogram?

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1 response

Hello,

It's often hard to gather anything specific from a graph, instead I like to think about ways that graphs can suggest hypotheses that I can test. Nothing jumps out at me about the histogram other than that your data doesn't seem to be normally distributed. Normal distributions are almost never the case in finance so that's not surprising.

You may find many of our free lectures useful, especially these ones:

https://www.quantopian.com/lectures#Plotting-Data
https://www.quantopian.com/lectures#Statistical-Moments

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