Anthropic Economic Index, Microsoftâs ExACT, OpenThinker-32B, Huginn-3.5BYour Voice Matters â Help Improve Data Science Learning! (+ Get a Free eBook!)Help us enhance Data Science learning with your insights! Take a 5-8 min survey and get:â
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Early access to new features & perks!đTake the Survey Now!đ˘ Welcome toDataPro #127~ Your Weekly Dose of Data Science & ML Innovation!The world of AI, machine learning, and data science never slows down, and weâre here to keep you on top of the latest innovations! From OpenAIâs o1 model for financial analysis to ArcticDBâs performance against Pandas, and Meta AIâs new CoCoMix framework, this edition is packed with breakthroughs, must-know tools, and career insights.đ Special Feature: An exclusive look at Python for Algorithmic Trading Cookbook by Jason Strimpel, helping you design, backtest, and deploy trading strategies with Python!đ In This Issue:đš Financial Analysis & AI: OpenAIâs o1 model is transforming financial research.đš Big Data Handling: Why ArcticDB is outperforming Pandas for massive datasets.đš AI Pretraining Advances: Meta AI introduces CoCoMix, improving LLM efficiencyđš Scaling Vision-Language Models: Google DeepMindâs WebLI-100B dataset enhances cultural diversity.đš AI & Databases: Googleâs Gen AI Toolbox for Databases streamlines AI-driven data access.đĄ Also Inside:đš Microsoftâs ExACT framework for AI decision-making.đš Anthropicâs Economic Index: A deep dive into AIâs real-world economic role.đš OpenThinker-32B: A powerful open-data reasoning model.đš Huginn-3.5B: A new approach to scalable latent AI computation.đš5 LLM Prompting Techniques that every developer should master.đŠ Enjoy this issue & stay ahead in the Data & AI game!đŹ Got a topic youâd love us to cover? Let us know!Cheers,Merlyn ShelleyGrowth Lead, Packt.⨠Featured Deep DiveOptimizing Financial Market Data with pandas: Analysis and TransformationHave you ever found yourself drowning in rows and columns of market data, wondering how to make sense of it all?Youâre not alone.The good news is that pandas is here to help!Originally created by Wes McKinney at AQR Capital Management, pandas has grown into the go-to Python library for financial data analysis. Since its open-source release in 2009, it has empowered analysts to manipulate, transform, and analyze data with ease.If you work with financial data, whether for trading, risk management, or portfolio analysis, you need pandas in your toolkit. With its rich support for time series, data transformation, and handling missing values, pandas is the perfect solution for making sense of complex datasets. In this guide, weâll walk through the essentials of pandas for financial market analysis. By the end, youâll have the confidence to apply these tools in real-world scenarios.Getting Started with pandas Data StructuresBuilding Series and DataFramesThink of aSeriesas a column in Excel, but smarter. Itâs a one-dimensional labeled array that can hold any data type. Letâs create a simple Series:import pandas as pd import numpy as np# Create a simple Series series = pd.Series([10, 20, 30, 40, 50], index=['A', 'B', 'C', 'D', 'E']) print(series)On the other hand, aDataFrameis a full table, imagine a spreadsheet where every column is a Series.# Creating a DataFrame data = {'Stock': ['AAPL', 'MSFT', 'GOOG'], 'Price': [150, 300, 2800], 'Volume': [10000, 15000, 12000]} df = pd.DataFrame(data) print(df)DataFrames make it easy to manipulate and analyze structured data, which is essential in financial market analysis.Handling Indexes in Financial DataUnderstanding pandas IndexingIndexes help you efficiently retrieve and align data. Different types include:Int64Index: Standard integer-based indexing.DatetimeIndex: Perfect for time series data.MultiIndex: Allows hierarchical indexing, great for financial datasets.Creating a DatetimeIndex for Financial Datadates = pd.date_range("2023â01â01", periods=10, freq='D') print(dates)MultiIndex for Market Datatuples = [('2023â07â10', 'AAPL'), ('2023â07â10', 'MSFT'), ('2023â07â10', 'GOOG')] multi_index = pd.MultiIndex.from_tuples(tuples, names=["date", "symbol"]) print(multi_index)Manipulating and Transforming Financial DataSelecting and Filtering DataEver needed to find just the right slice of market data? pandas makes it easy with .loc and .iloc:# Selecting by label print(df.loc[df['Stock'] == 'AAPL']) # Selecting by position print(df.iloc[0])Handling Missing DataMissing data is inevitable. pandas offers .fillna() and .dropna() to deal with it:df_missing = pd.DataFrame({'Stock': ['AAPL', 'MSFT', 'GOOG'], 'Price': [150, np.nan, 2800]}) print(df_missing.fillna(df_missing.mean()))Financial Market Analysis with pandasCalculating Asset ReturnsUnderstanding stock returns is crucial. You can compute daily returns using .pct_change():prices = pd.Series([100, 105, 103, 110, 120]) returns = prices.pct_change() print(returns)Measuring VolatilityVolatility reflects price fluctuations â critical for risk assessment:volatility = returns.std() print("Volatility:", volatility)Generating a Cumulative Return SeriesCumulative returns show total performance over time:cumulative_returns = (1 + returns).cumprod() print(cumulative_returns)Resampling and Aggregating Time Series DataFinancial analysts often need to adjust time frames, say, from daily to weekly data:date_rng = pd.date_range(start='2023â01â01', periods=30, freq='D') data = pd.DataFrame({'Date': date_rng, 'Price': np.random.randn(30) * 5 + 100}) data.set_index('Date', inplace=True) # Resample to weekly frequency weekly_data = data.resample('W').mean() print(weekly_data)Applying Custom Functions to Time Series DataWant a moving average? pandas makes it simple:def moving_average(series, window=3): return series.rolling(window=window).mean() # Apply a moving average function data['MA'] = moving_average(data['Price']) print(data)Conclusionpandas is an indispensable tool for financial data analysis. From handling missing data to calculating returns and volatility, it provides everything you need to extract meaningful insights from market data. Now that youâve got the fundamentals down, you can confidently explore more advanced financial analytics, perhaps even integrating machine learning models for deeper insights.Elevate Your Algorithmic Trading GameThis article is based onPython for Algorithmic Trading CookbookbyJason Strimpel, a detailed guide to designing, building, and deploying algorithmic trading strategies using Python. Whether youâre a trader, investor, or Python developer, this book equips you with hands-on recipes to acquire, visualize, and analyze market data, design and backtest trading strategies, and deploy them in a live environment.If youâre ready to take your algorithmic trading skills to the next level, this book is your roadmap. Get your hands on a copy and start building smarter, more efficient trading strategies today!Get your copy here đPython for Algorithmic Trading Cookbookđ Fresh Insights from OpenAI ââ´ď¸Ë・ââŻâŻâŻâŻ Sharing the latest Model Spec: OpenAI updated its Model Spec, reinforcing customizability, transparency, and intellectual freedom while maintaining safety. Now open-sourced under CC0, it prioritizes user control, objectivity, and harm prevention. OpenAI will iteratively refine it, using real-world prompts and public feedback for improvements.âŻâŻâŻâŻ Shaping the future of retail with AI: This blog highlights Wayfairâs AI-driven transformation across ecommerce, operations, and employee training. CTO Fiona Tan discusses AIâs role in personalization, supply chain optimization, marketing, and modernizing legacy systems. Wayfair leverages ChatGPT and OpenAI APIs to enhance customer experience, automate tasks, and drive innovation.âŻâŻâŻâŻ Using AI to focus on the big picture: This blog explores how Fanatics Betting and Gaming integrates AI into finance and operations. CFO Andrea Ellis discusses AI-driven efficiency, including automating vendor identification, accelerating data analysis, and improving strategic decision-making. The company fosters broad AI adoption through structured training, task forces, and custom GPT development.âŻâŻâŻâŻ Using OpenAI o1 for financial analysis: This blog highlights how Rogo leverages OpenAIâs models to transform financial research and workflows for investment banks, private equity, and asset managers. By fine-tuning GPT-4o and o1 models, Rogo delivers real-time insights, automates diligence, and optimizes financial decision-making, saving analysts 10+ hours weekly.âŻâŻâŻâŻ Introducing the Intelligence Age: This blog explores how AI, like past groundbreaking innovations, is transforming human potential. OpenAI highlights ChatGPTâs rapid adoption, its role in education, science, medicine, and government, and its Super Bowl ad showcasing AIâs historical significance. The goal: ensuring AGI benefits everyone, driving progress and creativity.âŻâŻâŻâŻ OpenAI partners with Schibsted Media Group: This blog announces OpenAIâs partnership with Schibsted Media Group, integrating content from VG, Aftenposten, Aftonbladet, and Svenska Dagbladet into ChatGPT for up-to-date news summaries with attribution. The collaboration supports quality journalism, AI-driven content innovation, and new commercial opportunities in digital media.đ Trendspotting: What's Next in Tech TrendsâŻâŻâŻâŻ Method of Moments Estimation with Python Code: This blog explains Method of Moments (MoM) estimation, a statistical technique for inferring probability distributions from data. Using Python code, it demonstrates MoM for Poisson and Normal distributions, showing how to estimate parameters efficiently and compare estimated distributions to true distributions for validation.âŻâŻâŻâŻ Pandas Canât Handle This: How ArcticDB Powers Massive Datasets. This blog explores how ArcticDB outperforms Pandas for massive datasets, enabling faster data processing, better memory management, and scalability. It demonstrates ArcticDBâs use in finance and climate research, compares performance with Pandas, and highlights when to use ArcticDB for large-scale, production-ready analytics.âŻâŻâŻâŻ 7 Tools You Cannot Live Without as a Data Scientist: This blog highlights seven essential tools for data scientists, focusing on AI-driven and productivity-enhancing software. It covers Google Workspace for organization, You.com for research, Cursor for coding, and Grammarly for writing assistance, showcasing how these tools improve efficiency, workflow, and project management.âŻâŻâŻâŻ Microsoft Research and Physics Wallah team up to enhance AI-based tutoring: This blog explores Microsoft Researchâs collaboration with Physics Wallah to enhance AI-powered tutoring in India using GPT-4o and advanced reasoning models. It highlights AI Guru, Smart Doubt Engine, and AI Grader, improving student accessibility, affordability, and learning outcomes for competitive exam preparation.âŻâŻâŻâŻ Meta AI Introduces CoCoMix: A Pretraining Framework Integrating Token Prediction with Continuous Concepts. This blog introduces Meta AIâs CoCoMix, an alternative LLM pretraining approach that integrates token prediction with concept-based reasoning using Sparse Autoencoders (SAEs). CoCoMix improves sample efficiency, generalization, knowledge transfer, and interpretability, offering a more structured and transparent model training paradigm.âŻâŻâŻâŻ Google DeepMind Research Introduces WebLI-100B: Scaling Vision-Language Pretraining to 100 Billion Examples for Cultural Diversity and Multilingualit. This blog discusses Google DeepMindâs WebLI-100B dataset, which scales vision-language model training to 100 billion image-text pairs. The dataset improves cultural diversity, multilinguality, and inclusivity, though traditional benchmarks show limited gains. It highlights bias challenges, dataset filtering trade-offs, and future research directions for more balanced AI models.đ ď¸ Platform Showdown: Comparing ML Tools & ServicesâŻâŻâŻâŻ Data Science Showdown: Which Tools Will Gain Ground in 2025: This blog forecasts emerging data science tools for 2025, highlighting PySpark, Numba, and Julia for big data computing, D3.js and Plotly for visualization, Streamlit, MLflow, and H2O.ai for model deployment, and OpenRefine for data preparation. It also discusses Google Cloud Platformâs growing prominence in AI and big data.âŻâŻâŻâŻ Building Multilingual Applications with Hugging Face Transformers: This blog explores building multilingual applications using Hugging Face Transformers, showcasing pre-trained models like XLM-R and mBERT for sentiment analysis, question answering, and summarization. It provides Python code, fine-tuning steps, and deployment tips to make multilingual AI integration easier and scalable.âŻâŻâŻâŻ Build a dynamic, role-based AI agent using Amazon Bedrock inline agents: This blog explores building dynamic AI assistants using Amazon Bedrock inline agents, enabling real-time tool selection, adaptive configurations, and role-based personalization. It showcases an HR assistant example, demonstrating flexibility in AI workflows, cost optimization, and scalability without managing multiple agent configurations.âŻâŻâŻâŻ Announcing Gen AI Toolbox for Databases: This blog announces the public beta of Gen AI Toolbox for Databases, an open-source server that connects agent-based generative AI applications to databases. Built in partnership with LangChain, it enhances scalability, security, observability, and tool management, supporting PostgreSQL, MySQL, and Google Cloud databases for seamless AI-driven data access.âŻâŻâŻâŻ Anthropic AI Launches the Anthropic Economic Index: A Data-Driven Look at AI's Economic Role. This blog introduces the Anthropic Economic Index, a data-driven initiative tracking AIâs economic impact across industries. Analyzing millions of anonymized Claude conversations, it maps AI adoption by occupation, highlighting high usage in software, writing, and analytical tasks while noting limited adoption in physical labor and specialized fields.âŻâŻâŻâŻ Meet Huginn-3.5B: A New AI Reasoning Model with Scalable Latent Computation. This blog introduces Huginn-3.5B, an AI model leveraging recurrent depth reasoning to dynamically refine computations in latent space. Unlike traditional Chain-of-Thought methods, it scales compute per task, improves efficiency without large context windows, and outperforms larger models in reasoning benchmarks.đ Success Stories: Real-World ML Case StudiesâŻâŻâŻâŻ 5 LLM Prompting Techniques Every Developer Should Know: This blog explores five essential LLM prompting techniques for developers: zero-shot, few-shot, chain-of-thought, tree-of-thought, and self-consistency prompting. These methods improve AI accuracy, reasoning, and response consistency, helping developers optimize interactions with models like Claude AI and ChatGPT for better results.âŻâŻâŻâŻ 10 Little-Known Python Libraries That Will Make You Feel Like a Data Wizard: This blog introduces 10 lesser-known Python libraries that enhance data science workflows, covering visualization (Altair), SQL analytics (DuckDB), geospatial analysis (H3), automated profiling (Ydata Profiling), dependency management (Poetry), graph analysis (NetworkX), scalable ML (H2O.ai, PyCaret), and missing data visualization (Missingno).âŻâŻâŻâŻ Should Data Scientists Care About Quantum Computing? This blog explores the relevance of quantum computing for data scientists, addressing how AI accelerates quantum advancements and how quantum computing could optimize data science workflows in the future. While not yet essential for most data scientists, being quantum-aware offers a strategic advantage as the field evolves.âŻâŻâŻâŻ ExACT: Improving AI agentsâ decision-making via test-time compute scaling. This blog introduces Microsoftâs ExACT, a new AI framework that enhances autonomous agents' decision-making through Reflective-MCTS (R-MCTS) and Exploratory Learning. ExACT improves reasoning, adaptability, and generalization in dynamic environments, achieving state-of-the-art performance in AI benchmarks like VisualWebArena and OSWorld.âŻâŻâŻâŻ 3 Ways to Secure Your Data Science Job From Layoffs in 2025: This blog outlines three key strategies to secure your data science job amid growing AI-driven layoffs in 2025. It emphasizes the importance of strong foundational skills, business-facing roles, and workplace visibility to stay competitive and thrive in an evolving job market.âŻâŻâŻâŻ Meet OpenThinker-32B: A State-of-the-Art Open-Data Reasoning Model. This blog introduces OpenThinker-32B, an open-data reasoning model designed to excel in mathematics, coding, and scientific inquiry. Fine-tuned from Qwen2.5-32B-Instruct and trained on the OpenThoughts-114k dataset, it achieves state-of-the-art performance across reasoning benchmarks, offering an open-source alternative for AI research and development.Weâve got more great things coming your way, see you soon!*{box-sizing:border-box}body{margin:0;padding:0}a[x-apple-data-detectors]{color:inherit!important;text-decoration:inherit!important}#MessageViewBody a{color:inherit;text-decoration:none}p{line-height:inherit}.desktop_hide,.desktop_hide table{mso-hide:all;display:none;max-height:0;overflow:hidden}.image_block img+div{display:none}sub,sup{font-size:75%;line-height:0} @media (max-width: 100%;display:block}.mobile_hide{min-height:0;max-height:0;max-width: 100%;overflow:hidden;font-size:0}.desktop_hide,.desktop_hide table{display:table!important;max-height:none!important}}
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