Enhanced OLS Diagnostic and Residual Visualization

• Day: 2024-01-18
• Time: 16:05 to 17:15
• Project: Dev
• Workspace: WP 2: Operational
• Status: Completed
• Priority: MEDIUM
• Assignee: Matías Nehuen Iglesias
• Tags: Python, OLS, Data Visualization, Rolling Residuals, Candlestick Chart

Description

Session Goal:

The session aimed to enhance the visualization of stock data analysis by integrating OLS diagnostic plots with residual calculations and candlestick charts.

Key Activities:

• Modified Function for Rolling Residuals Calculation: Updated the add_rolling_residuals function to perform OLS computation directly, improving debugging and control over residuals.
• Created Line Plot with Residuals: Developed a line plot for adjusted close prices, highlighting residuals due to the absence of mplfinance for candlestick charts.
• Created Diagnostic Plot for OLS Model: Outlined steps to create a diagnostic plot for OLS regression, including original data, regression line, and residuals.
• Integrated OLS Diagnostic Plot with Candlestick Chart: Provided a script to combine OLS diagnostic plots with a candlestick chart using a secondary y-axis for better visualization.
• Efficient Calculation of Rolling Residuals: Implemented a script to apply rolling residual calculations across multiple tickers, consolidating results into a CSV file.

Achievements:

• Successfully integrated OLS diagnostic plots with candlestick charts, enhancing [[data visualization]] capabilities.
• Improved the efficiency of rolling residual calculations across multiple data sets.

Pending Tasks:

• Explore alternatives or updates for the mplfinance module to incorporate candlestick charts directly in future visualizations.

Evidence

• source_file=2024-01-18.sessions.jsonl, line_number=4, event_count=0, session_id=48d02496103508f3bb11ecc99b1c484e26026c43c15d1513d26876d0fd210c82
• event_ids: []