Compares the statistical distribution of daily returns for ^NSEI and ^GSPC: mean, volatility, skewness, and kurtosis (fat tails), including how well each is approximated by a Normal distribution.
Fits a Normal curve to each index's return histogram, then standardizes both series (z-scores) so their shapes — not their absolute scale — can be compared directly.
Motivation: many option-pricing and risk models assume Normal returns; real index returns are leptokurtic, and this notebook quantifies that for one developed and one emerging market.
Fixed from the original draft
- A hardcoded future end date.
- Several dead Monte-Carlo demo cells left over from an unrelated earlier exercise.
- Six near-duplicate iterations of the same fetch-and-plot cell, collapsed into one clean pipeline.
- No defense against yfinance's MultiIndex column format.
- Added the standardized z-score overlay.
DistributionsKurtosisyfinanceCross-market