week 2 Finance with Python
Posted by: admin 6 months ago
(Comments)
Week 2: Portfolio Management and Risk Analysis
Learning Material:
-
Day 1: Portfolio Theory
- Objective: Understand portfolio theory, diversification, and risk-return trade-offs.
- Topics: Portfolio construction and risk management.
-
Day 2: Building Portfolios in Python
- Objective: Learn how to create diversified portfolios in Python.
- Topics: Portfolio optimization and Python libraries for financial data analysis.
- Code Example: Building a diversified portfolio in Python.
python
import pandas as pd # Sample stock data (stock prices in a DataFrame) stock_data = pd.read_csv("stock_data.csv") # Define portfolio weights weights = [0.4, 0.3, 0.2, 0.1] # Calculate portfolio returns and risk portfolio_returns = (stock_data.pct_change() * weights).sum(axis=1) portfolio_risk = portfolio_returns.std() -
Day 3: Risk Measures
- Objective: Explore different risk measures and metrics in finance.
- Topics: Standard deviation, beta, and other risk metrics.
-
Day 4: Value at Risk (VaR)
- Objective: Learn about VaR and its calculation in Python.
- Topics: Value at Risk calculation and Python libraries for financial risk analysis.
- Code Example: Calculating VaR in Python.
python
import numpy as np from scipy.stats import norm # Define portfolio returns (daily returns) returns = np.array([0.02, 0.01, -0.03, 0.015, -0.02, 0.01, 0.015, -0.015]) # Calculate VaR at a specific confidence level (e.g., 95%) confidence_level = 0.95 z_score = norm.ppf(confidence_level) var = -np.percentile(returns, z_score * 100) print(f"Value at Risk (VaR) at {confidence_level*100}%: {var}") - Day 5: Exercise
- Objective: Apply risk analysis concepts to real data and calculate risk measures and VaR using Python.
Note: Week 2 focuses on portfolio management and risk analysis, introducing concepts and their practical application with Python.
Share on Twitter Share on Facebook
3 months, 1 week ago
A reflection of using kanban flow and being minimalist
Recent newsToday is the consecutive day I want to use and be consistent with the Kanban flow! It seems it's perfect to limit my parallel and easily distractedness.
read more3 months, 3 weeks ago
3 months, 3 weeks ago
Podcast Bapak Dimas 2 - pindahan rumah
Recent newsVlog kali ini adalah terkait pindahan rumah!
read more3 months, 3 weeks ago
Podcast Bapak Dimas - Bapaknya Jozio dan Kaziu - ep 1
Recent newsSeperti yang saya cerita kan sebelumnya, berikut adalah catatan pribadi VLOG kita! Bapak Dimas
read more3 months, 3 weeks ago
Happy new year 2024 and thank you 2023!
Recent newsAs the new year starts, I want to revisit what has happened in 2023.
read more3 months, 3 weeks ago
Some notes about python and Zen of Python
Recent newsExplore Python syntax
Python is a flexible programming language used in a wide range of fields, including software development, machine learning, and data analysis. Python is one of the most popular programming languages for data professionals, so getting familiar with its fundamental syntax and semantics will be useful for your future career. In this reading, you will learn about Python’s syntax and semantics, as well as where to find resources to further your learning.
5 months, 1 week ago
Collaboratively administrate empowered markets via plug-and-play networks. Dynamically procrastinate B2C users after installed base benefits. Dramatically visualize customer directed convergence without
Comments