Pandas: What does the compound method is useful for?
Pandas: What does the compound method is useful for?
I found pandas compound dataframe method documentation but it is really terse. I've tried to run it on a simple dataframe, but didn't understand its utility. Here is my example:
In [5]: df = pd.DataFrame(np.arange(6).reshape(3,2), columns=['a', 'b'])
In [6]: df
Out[6]:
a b
0 0 1
1 2 3
2 4 5
In [7]: df.compound()
Out[7]:
a 14
b 47
dtype: int32
What should I use this method for?
a
Its the same as
df.a.add(1).cumprod().sub(1) . You can see the compounding evolving, and .compound() yields just the last number– RafaelC
Sep 10 '18 at 4:04
df.a.add(1).cumprod().sub(1)
.compound()
1 Answer
1
This is more like loan calculation -- compound interest
df.compound()
Out[143]:
a 14
b 47
dtype: int32
So for columns a
a
Ops, I could have just ctrl-click to see the source:
(1 + self).prod(axis=axis, skipna=skipna, level=level) - 1– neves
Sep 11 '18 at 13:39
(1 + self).prod(axis=axis, skipna=skipna, level=level) - 1
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Column
ameans you earn 0% the first year, 200% the second year and 400% the third, for a total of 15x the original amount, or an increase of 1400%. Time units are made up.– Mad Physicist
Sep 10 '18 at 4:02