What does auto_adjust=True do while downloading the historical data of a stock using the yfinance module in Python? I found no official documentation.
algotrading101 says it adjusts all OHLC (Open/High/Low/Close) prices. However, this StackOverflow post says it will only adjust the closing price.
Which one is correct?
The code for the yfinance library is available on GitHub. We can inspect auto_adjust in the codebase.
A quick glance at the relevant code linked above shows that auto_adjust makes adjustments to each of the Open, High, and Low prices based on the ratio of Adj Close and Close data provided by the upstream source.
