single-stock-test-strategies.py

import yfinance as yf
import pandas as pd
import numpy as np

def fetch_stock_data(ticker, start_date, end_date):
    """
    Fetch historical stock data from Yahoo Finance.
    """
    stock_data = yf.download(ticker, start=start_date, end=end_date)
    return stock_data

def calculate_returns(data, periods):
    """
    Calculate stock returns for different holding periods.
    """
    returns = {}
    for period in periods:
        # Calculate returns for each period
        data[f'return_{period}'] = data['Adj Close'].pct_change(periods=period).shift(-period)
        # Store in dictionary
        returns[period] = data[f'return_{period}']
    return returns

def backtest_strategies(ticker, start_date, end_date, holding_periods):
    """
    Backtest different investment strategies and calculate potential returns.
    """
    # Fetch stock data
    stock_data = fetch_stock_data(ticker, start_date, end_date)
    
    # Calculate returns
    returns = calculate_returns(stock_data, holding_periods)
    
    # Print summary statistics for each holding period
    for period, return_data in returns.items():
        print(f"Strategy: Hold for {period} days")
        print(return_data.describe())
        print("\n")

# Define the stock ticker, start date, and end date
ticker = 'AAPL'  # Example: Apple Inc.
start_date = '2010-01-01'
end_date = '2023-01-01'

# Define holding periods in days (approximations for 2 weeks to 5 years)
holding_periods = [14, 28, 60, 180, 365, 730, 1095, 1460, 1825]

backtest_strategies(ticker, start_date, end_date, holding_periods)