Stock Prediction with CAPM and Fama-French Model

[sharayuanuse]

Related Issues or bug

This pull request addresses the issue related to implementing stock return prediction using the CAPM and Fama-French models for Mahindra company data. The primary challenge was to accurately predict stock returns and compare the accuracy of these two financial models based on historical stock data.

Fixes: #149

Proposed Changes

• Implemented the Capital Asset Pricing Model (CAPM) for predicting stock returns.
• Added the Fama-French Three-Factor Model to improve the prediction accuracy of stock returns.
• Performed data analysis using Pandas and NumPy on historical stock data from Yahoo Finance.
• Compared the models' performances by calculating R-squared and p-values for each.
• Added visualizations using Matplotlib to showcase the comparison between predicted and actual returns.
• Found that the Fama-French model outperforms CAPM by providing 36% greater accuracy in predicting Mahindra's stock returns.

Additional Info

• Both models were tested on the same dataset for fair comparison.
• The historical stock data was fetched from Yahoo Finance.
• Statistical analysis (R-squared and p-values) was used to verify model accuracy.

Screenshots

[github-actions]

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[github-actions]

🎉🎉 Thank you for your contribution! Your PR #196 has been merged! 🎉🎉