What is Density Plot?

A density plot can be seen as an extension of the histogram. As opposed to the histogram, the density plot can smooth out the distribution of values and reduce the noise.

It visualizes the distribution of data over a given period, and the peaks show where values are concentrated.

As such density plots work better at determining the distribution shape (the concept of the shape of a probability distribution arises in questions of finding an appropriate distribution to use to model the statistical properties of a population, given a sample from that population) because they’re not affected by the number of bins.

The most well-known form of density plot is kernel density estimation, where a continuous curve is drawn at every individual data point. Then all of these curves are sum up to make a single smooth density estimation.