Essential NumPy Functions

NumPy provides powerful functions for statistical calculations that are essential in financial analysis. Let's explore the most important ones.

Basic Statistics

Sum and Cumulative Sum

Cumulative Product (Compound Growth)

Calculating Daily Returns

Percentiles and Quantiles

Working with Multiple Arrays

Practice: Calculate Portfolio Statistics

Practice: Compound Growth Calculator

Key Takeaways

• np.mean(), np.median(), np.std() for basic statistics
• np.min(), np.max() for extremes
• np.sum() for totals, np.cumsum() for running totals
• np.cumprod() for compound growth calculations
• np.percentile() for distribution analysis and VaR
• np.corrcoef() for correlation between assets
• Array slicing enables efficient return calculations

Next, we'll learn Pandas - the ultimate tool for financial data analysis!