Linkedin
Price Dynamics & Uncertainty
This simulator models a discrete-time random walk for an asset price. Each step applies a drift, producing many possible price paths that illustrate how uncertainty compounds over time. By simulating hundreds of trajectories, the model visualises the probabilistic spread inherent in stochastic systems.
Each step adds a drift and range of volatility.
Inputed from user, can alter amount paths and total time in days, along with volatility.
Representative simulation frame.
Simulated trajectories diverge over time, illustrating uncertainty growth.
A histogram visualising the distribution of ending prices across paths.
Comparing low-volatility and high-volatility walk configurations.
Define number of paths, steps, starting value and volatility.
Apply Gaussian noise at each timestep.
Evaluate the distribution and behaviour of resulting price paths.