Tag: optimization

  • Risk-Aware Strategies for DCA Investors

    Risk-Aware Strategies for DCA Investors

    Let’s look at the the Dollar-Cost Averaging (DCA) investment approach that involves investing the same amount of money in a target security at regular intervals over a certain period of time, regardless of price. It can make it easier to deal with uncertain markets by making purchases automatic. It also supports an investor’s effort to invest…

  • Joint Analysis of Bitcoin, Gold and Crude Oil Prices with Optimized Risk/Return in 2023

    Joint Analysis of Bitcoin, Gold and Crude Oil Prices with Optimized Risk/Return in 2023

    Referring to the recent fintech R&D study in Python, let’s discuss joint time-series analysis of Bitcoin (BTC), Gold (GC=F) and Crude Oil (CL=F) prices 2021-23 with the subsequent Markowitz portfolio optimization of these 3 assets in 2023. Goals: Scope: Input Data Let’s set the working directory import os os.chdir(‘PORTFOLIORISK’) os. getcwd() and import the following…

  • Applying a Risk-Aware Portfolio Rebalancing Strategy to ETF, Energy, Pharma, and Aerospace/Defense Stocks in 2023

    Applying a Risk-Aware Portfolio Rebalancing Strategy to ETF, Energy, Pharma, and Aerospace/Defense Stocks in 2023

    In this post, we will apply the Guillen’s asset rebalancing algorithm (cf. the Python code) to the following risk-aware portfolio: stocks = [‘SPY‘, ‘XOM‘, ‘ABBV‘, ‘AZN‘, ‘LMT‘] The initial portfolio value to be allocated is portfolio_value = 10**6 and the weight allocation per asset is weights = [0.15 , 0.30, 0.40, 0.075, 0.075] Conventionally, our…

  • Revision 360 of Risk Aware Investing after SVB Collapse – 1. The Financial Sector

    Revision 360 of Risk Aware Investing after SVB Collapse – 1. The Financial Sector

    Following our recent analysis of the US banking crisis, let’s perform revision 360 of risk aware investing after the collapse of Silicon Valley Bank and Signature Bank. Clickable Table of Contents: Headlines The Guardian Mon 13 Mar 2023 06.42 GMT: Seeking Alpha Update Zacks Investment Research 15 March 2023: Stocks Close Higher On Moderating CPI…

  • Portfolio max(Return/Risk) Stochastic Optimization of 20 Dividend Growth Stocks

    Portfolio max(Return/Risk) Stochastic Optimization of 20 Dividend Growth Stocks

    The goal of portfolio optimization is to build a stock portfolio that yields the maximum possible return while maintaining the amount of risk you’re willing to carry. Referring to our previous case study, let’s invoke the stochastic optimization algorithm and the corresponding code to create an optimized portfolio by testing 10,000 combinations of the following…

  • Towards Max(ROI/Risk) Trading in Q1 2023

    Towards Max(ROI/Risk) Trading in Q1 2023

    In this post, we will compare 1Y ROI/Risk of selected stocks vs ETF using a set of basic stock analyzer functions. The posts consists of the following three parts: Looking at the closing price of a stock over time is a good way to track its performance We combine the risk and return metrics into…

  • Risk/Return POA – Dr. Dividend’s Positions

    Risk/Return POA – Dr. Dividend’s Positions

    Based upon the Portfolio Optimization Algorithm (POA) discussed earlier and the relevant POA QC analysis and comparisons, let’s look at the current stock positions suggested by Dr. Dividend (DD). Let’s define the following POA parameters: benchmark_ = [“^GSPC”,]portfolio_ = [‘AAPL’, ‘GOOG’, ‘COST’, ‘SBUX’, ‘DE’,’SOFI’,’APD’,’UNH’,’SHW’,’NVDA’] start_date_ = “2021-01-01”end_date_ = “2022-10-05”number_of_scenarios = 10000 trade_days_per_year = 252 delta_risk…

  • HealthTech ML/AI Q3 ’22 Round-Up

    HealthTech ML/AI Q3 ’22 Round-Up

    Featured Photo by Andy Kelly on Unsplash This blog presents a Q3 ’22 summary of current healthtech ML/AI innovation methods, trends and challenges. Virtual reality, artificial intelligence, augmented reality, and machine learning are all healthcare technology trends that are going to play a vital role across the entire healthcare system. Let’s take a look at…

  • Portfolio Optimization Risk/Return QC – Positions of Humble Div vs Dividend Glenn

    Portfolio Optimization Risk/Return QC – Positions of Humble Div vs Dividend Glenn

    Based upon the Portfolio Optimization Algorithm (POA) discussed earlier and the relevant POA QC use-case (positions of The Dividend Breeder), let’s run the similar algorithm to compare top 5 stock positions of Humble Div (HD) vs Dividend Glenn (DG) in terms of the Risk/Return Ratio (RRR) or RRR1=1/RRR. Let’s define the following common POA parameters:…

  • Stock Portfolio Risk/Return Optimization

    Stock Portfolio Risk/Return Optimization

    Featured Image by D koi on Unsplash Following the Garcia’s exercise on how to create a portfolio testing 10,000 combinations of stocks, let’s implement the end-to-end Python stock optimization workflow that minimizes the Risk/Retun ratio with respect to a market benchmark. Such a stand alone workflow consists of the following steps: Let’s set up the…

  • Macroaxis Wealth Optimization

    Contents: Overview What is Macroaxis? Investment management solution that helps businesses create and manage portfolios, capital through financial analysis tools. Best For Designed for small businesses, it is an investment management solution that helps with portfolio creation, asset allocation, and more using various financial models. Pricing Macroaxis pricing starts at $19.99 per month. There is a free…