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Stock Prediction with CAPM and Fama-French Model

Open sharayuanuse opened this issue 1 year ago • 5 comments

Pull Request for PyVerse 💡

Requesting to submit a pull request to the PyVerse repository.

Issue Title

Stock Prediction with CAPM and Fama-French Model

  • [x] I have provided the issue title.

Info about the Related Issue

What's the goal of the project?
The goal of this project is to predict the stock returns of Mahindra using the Capital Asset Pricing Model (CAPM) and the Fama-French Three-Factor Model. The project aims to compare the accuracy of both models and determine which is better at predicting the company's stock returns based on historical financial data.

  • [x] I have described the aim of the project.

Name

Sharayu Anuse

  • [x] I have provided my name.

GitHub ID

114616759

  • [x] I have provided my GitHub ID.

Email ID

[email protected]

  • [x] I have provided my email ID.

Identify Yourself

Mention in which program you are contributing (e.g., WoB, GSSOC, SSOC, SWOC).
GSSOC-Ext, Hacktoberfest

  • [x] I have mentioned my participant role.

Closes

Closes: #250

  • [x] I have provided the issue number.

Describe the Add-ons or Changes You've Made

Give a clear description of what you have added or modified.

  • Implemented both the CAPM and Fama-French Three-Factor Model for predicting stock returns.

  • Added functionality for data analysis using Pandas and NumPy.

  • Plotted visualizations to compare the predicted returns with actual returns using Matplotlib.

  • Provided statistical analysis to demonstrate that the Fama-French model shows 36% greater accuracy than CAPM.

  • [x] I have described my changes.

Type of Change

Select the type of change:

  • [ ] Bug fix (non-breaking change which fixes an issue)
  • [x] New feature (non-breaking change which adds functionality)
  • [ ] Code style update (formatting, local variables)
  • [ ] Breaking change (fix or feature that would cause existing functionality to not work as expected)
  • [ ] This change requires a documentation update

How Has This Been Tested?

Describe how your changes have been tested.

  • Generated accuracy scores to compare the two models.

  • Visualization Testing: Plotted data to visually verify the accuracy of predicted vs. actual stock returns.

  • [x] I have described my testing process.

Checklist

Please confirm the following:

  • [x] My code follows the guidelines of this project.
  • [x] I have performed a self-review of my own code.
  • [x] I have commented my code, particularly wherever it was hard to understand.
  • [x] I have made corresponding changes to the documentation.
  • [x] My changes generate no new warnings.
  • [x] I have added things that prove my fix is effective or that my feature works.
  • [x] Any dependent changes have been merged and published in downstream modules.

sharayuanuse avatar Oct 10 '24 08:10 sharayuanuse

👋 Thank you for opening this pull request! We're excited to review your contribution. Please give us a moment, and we'll get back to you shortly!

Feel free to join our community on Discord to discuss more!

github-actions[bot] avatar Oct 10 '24 08:10 github-actions[bot]

Can you please review and merge this issue.

sharayuanuse avatar Oct 11 '24 13:10 sharayuanuse

Can you please review and merge this issue.

Wait for some time as @shaansuraj and @TheChaoticor review it once, and if anyone approved then it will be merged.

UTSAVS26 avatar Oct 11 '24 14:10 UTSAVS26

Okay. Thank you.

sharayuanuse avatar Oct 11 '24 14:10 sharayuanuse

@shaansuraj and @TheChaoticor can you review this pull request and merge it.

sharayuanuse avatar Oct 14 '24 12:10 sharayuanuse

@UTSAVS26 can you review and merge the pull request.

sharayuanuse avatar Oct 16 '24 10:10 sharayuanuse