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Learning pandas - Second Edition by Michael Heydt

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Correlations between multiple variables with the scatter plot matrix

A scatter plot matrix is a popular way of determining whether there is a linear correlation between multiple variables. This code creates a scatter plot matrix with random values, and renders a scatter plot for each variable combination as well as a kde graph for each variable along the diagonal:

We will see this plot again when it is applied to finance, when correlations of various stocks are calculated.

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