FTSE 100 analysis in python

What is the FTSE 100 index?

FTSE is the Financial Times Stock Exchange. This is a share index of the 100 companies listed on the London Stock Exchange.
The FTSE 100 Index, often referred to simply as the FTSE 100, is a major stock market index that represents the performance of the 100 largest companies by market capitalization listed on the London Stock Exchange (LSE). It is one of the most widely followed and recognized stock market indices in the United Kingdom and serves as a benchmark for the performance of the British stock market.

Here are some key features and details about the FTSE 100 Index:

Composition: The FTSE 100 Index consists of the 100 largest publicly traded companies listed on the London Stock Exchange. These companies come from various sectors, including finance, energy, healthcare, consumer goods, technology, and more. The composition of the index is reviewed and adjusted periodically to ensure it accurately reflects the market's performance.

Market Capitalization Weighted: The FTSE 100 is a market capitalization-weighted index. This means that companies with a higher market capitalization (the total value of their outstanding shares) have a more significant impact on the index's performance.

Global Significance: Although it represents companies listed on the LSE, the FTSE 100 is closely watched by investors worldwide. It is often used as a barometer for the overall health of the UK economy and as an indicator of global market sentiment.

Diverse Sector Representation: The index covers a broad spectrum of industries, including banking and finance (e.g., HSBC, Barclays), oil and gas (e.g., BP, Royal Dutch Shell), pharmaceuticals (e.g., AstraZeneca, GlaxoSmithKline), retail (e.g., Tesco, Unilever), and more. This diversification helps spread risk for investors.

Price and Total Return Versions: There are two versions of the FTSE 100 Index: the price return version and the total return version. The price return version reflects only changes in the prices of the index's constituent stocks, while the total return version includes dividend income generated by those stocks.

Calculation: The index is calculated and maintained by the FTSE Group, a global financial services company. It uses a formula that takes into account the market capitalization of each company and adjusts for changes such as stock splits and mergers.

Global Investors: Many international investors use financial instruments based on the FTSE 100, such as exchange-traded funds (ETFs) and index futures, to gain exposure to the UK stock market.

Market Hours: The FTSE 100 follows the trading hours of the London Stock Exchange, typically open from 8:00 AM to 4:30 PM (GMT), Monday to Friday.

Historical Performance: The FTSE 100's historical performance reflects the ups and downs of the UK and global economies, as well as trends in various industries.

Volatility: Like most stock indices, the FTSE 100 can experience periods of volatility, influenced by factors such as economic data, geopolitical events, interest rates, and currency fluctuations.

Investors and financial professionals use the FTSE 100 as a reference point for assessing the performance of UK stocks and making investment decisions. It serves as an essential tool for portfolio diversification and risk management.

How to get data in Python?

There are many ways to collect data, I am taking historical data from Yahoo Finance.

What is code in Python to get data?

df = yf.download('^FTSE',

How to convert ftse100 data adj column in Python?

df = df.loc[:, ['Adj Close']]
df.rename(columns={'Adj Close':'adj_close'}, inplace=True)

How to get simple and log return FTSE100 in Python?

df['simple_rtn'] = df.adj_close.pct_change()
df['log_rtn'] = np.log(df.adj_close/df.adj_close.shift(1))

How to see simple and log return ftse100 in Python?


How to plot ftse100 log return in Python?

simple and log return ftse100
simple and log return ftse100

How to plot time series ftse100 in Python?

fig, ax = plt.subplots(31, figsize=(2420), sharex=True)
ax[0].set(title = 'FTSE time series',
ylabel = 'Stock price ($)')
ax[1].set(ylabel = 'Simple returns (%)')
ax[2].set(xlabel = 'Date',
ylabel = 'Log returns (%)')

time series ftse100
ftse100 time series

How to plot 3 volatility ftse100 in Python?

fig, ax = plt.subplots()
ax.plot(df_outliers.index, df_outliers.simple_rtn,
color='blue', label='Normal')
ax.scatter(outliers.index, outliers.simple_rtn,
color='red', label='Anomaly')
ax.set_title("FTSE100 returns")
ax.legend(loc='lower right')
ftse100 3alpha

How to draw ftse100 daily return?

df.log_rtn.plot(title='Daily FTSE returns')
<matplotlib.axes._subplots.AxesSubplot at 0x7f47d720f550>
ftse100 return

How to find a correlation between ftse100 and vix?

More Important Research FTSE100

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