Creating a histogram of Yearly Returns

Question

I am trying to finish a task for a project and my task is to create a histogram of yearly returns of Dow Jones historical returns. I have uploaded a picture of the task and my progress below. The problem I have at this point is that I can't find a way to separate the years in the histogram as it shows in the task and I don't know how to modify the y-axix and the legend to show the information that is showing in the first picture.

Any help is appreciated

What I am trying to make and My progress so far

Here is my code:

# Importing packages
import numpy as np

import pandas as pd
import matplotlib.pyplot as plt
import seaborn as sns
import datetime

#setting the order
order=[-60,-50,-40,-30,-20,-10,
0,10,20,30,40,50,60,70]

#getting the data
dow_jones_returns = pd.read_csv('data/dow-jones-by-year-historical-annual-returns (2).csv')

dow_jones=pd.DataFrame(data=dow_jones_returns)

dow_jones['date']=pd.to_datetime(dow_jones['date'])

dow_jones['date']=pd.DatetimeIndex(dow_jones['date']).year

pd.to_numeric(dow_jones.value)

up_to_2019=dow_jones.iloc[0:99]

lastyear= dow_jones.iloc[-1]

#ploting the histogram
fig = plt.figure()

up_to_2019['value'].plot.hist(bins = order)    
plt.show()

Answer 1

Hi to just give you some further directions,

Regarding the Textbox
the textbox looks like it contains the summary statistics of DataFrame.describe() + a few additional ones. You can create a textbox by utilzing a combination of .text() and .subplot() I found this guide to be very useful for creating a textbox in a plot

Since we dont have the data, here a pseudo code:

import numpy as np
import matplotlib.pyplot as plt
fig, ax = plt.subplots()
textstr = str(up_to_2019['value'].describe())

ax.hist(up_to_2019['value'], bins = order)   

# these are matplotlib.patch.Patch properties
props = dict(boxstyle='round', facecolor='wheat', alpha=0.5)

# place a text box in upper left in axes coords
ax.text(0.05, 0.95, textstr, transform=ax.transAxes, fontsize=10,
        verticalalignment='top', bbox=props)

plt.show()

Regarding the y-axis:
1) Here is how you set the right label: plt.ylabel("Number of Observations\n(Probability in%)")
2) Than add the Ticks plt.yticks(np.arange(1,27))

Regarding the labels inside the bins
Thats rather tricky, one option, though definitely not advised would to also include the labels via the .text() method. I dont know if it helps but here is how you do this in R.
Also might helpful are these two links:

• how-to-add-a-text-into-a-rectangle
• Change color for the patches in a hist

Apparently calling plt.hist() has three return values one of which is callled patches. You can iterate over patches and i.e. change the color of these (see the link above) however I couldn't figure how to put a text to them.

import numpy as np
import matplotlib.mlab as mlab
import matplotlib.pyplot as plt   
x = [21,22,23,4,5,6,77,8,9,10,31,32,33,34,35,36,37,18,49,50,100]
num_bins = 5
n, bins, patches = plt.hist(x, num_bins, facecolor='blue', alpha=0.5)
for i,pat in enumerate(patches):
    pat.set_test("Test") #this doesnt work sadly