Generating a density plot
The density plot uses the kernel density estimation to generate the distribution. In this recipe, we will utilize the density()
function to generate a plot. The density plots can be used to study the underlying distribution of the data.
Getting ready
We will use the quantmod
package to download the stock prices for Microsoft and also calculate monthly returns:
install.packages("quantmod") library(quantmod)
How to do it…
We will download the data in R using the getSymbols()
function. Once we have the data, we can calculate the monthly returns using the monthlyReturns()
function:
prices = c("MSFT") getSymbols(prices) msft_m = monthlyReturn(MSFT) ...
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