Mastering Python for Finance - Second Edition

Scikit-learn for machine learning

Scikit-learn is a Python library designed for scientific computing and contains a number of state-of-the-art machine learning algorithms for classification, regression, clustering, dimensionality reduction, model selection, and preprocessing. Its name is derived from the SciPy Toolkit, which is an extension of the SciPy module. Comprehensive documentation on scikit-learn can be found at https://scikit-learn.org.

SciPy is a collection of Python modules for scientific computing, containing a number of core packages, such as NumPy, Matplotlib, IPython, and others.

In this chapter, we will be using scikit-learn's machine learning algorithms to predict securities movements. Scikit-learn require a working installation ...