Logarithmic returns in pandas dataframe

Question

Python pandas has a pct_change function which I use to calculate the returns for stock prices in a dataframe:

ndf[\'Return\']= ndf[\'TypicalPrice\'].pct_chan         


        

Answer 1

Log returns are simply the natural log of 1 plus the arithmetic return. So how about this?

df['pct_change'] = df.price.pct_change()
df['log_return'] = np.log(1 + df.pct_change)