How to create a Bell Curve using only Python

A bell curve is a type of distribution for a variable, also known as the normal distribution. The term ‘bell curve’ originates from the fact that the graph used to depict the normal distribution consists of a symmetrical bell shaped curve. The highest point in the curve represents the most probable event in a series of data, being the mean, mode or median. All other possible occurrences are symmetrically distributed around the mean, creating a downward sloping curve on each side of the peak. The width of the curve is known as its standard deviation. Bell curves are used commonly statistics, to include analysing financial and economic data.

Financial analysts and investors normally use the normal probability distribution when analysing the returns of the returns of a security or overall market sensitivity. The standard deviations that depict the returns of a security are known as volatility.

Stocks that display a bell curve are usually blue-chip stocks, have lower volatility, and more predictable behaviour patterns.Investors use the normal probability distribution of a stock’s past performance to make assumptions about its expected future returns.