This is an ongoing project to assess the performance of a portfolio, find optimal weighting of the assets, and price different financial products.
More specifically, I am first building a framework to
- load stock data from yahoo finance
- plot time series of stock prices, return distributions and Quantile-Quantile (Q-Q) diagrams
- check for normality of the distribution of returns
- calculate optimal weights of the portfolio, the efficient frontier, and the Capital Market Line (CML)
- find the tangency portfolio
- ... (work in progress)
The second part of this project will be a framework to price different financial products such as different kinds of bonds, or derivative products (e.g. options), and use Monte-Carlo simulation to show expected returns of certain (hedging) strategies using derivatives.