Portfolio Optimization In Python
A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange-traded funds (ETFs), here in this topic I'm talking about stock portfolios. Portfolio optimization is the process of selecting the best portfolio, out of the set of all portfolios being considered, according to some objective. The objective typically maximizes factors such as expected return and minimizes financial risk. With the help of "daily returns", "annualized covariance matrix","portfolio variance","portfolio volatility" and "annual portfolio return" I'll do portfolio optimization on python. I'll take historical data of stocks with the help of "pandas DataReader" and then use statics formulas mentioned above to do the optimization and state what is the annual return and risk involved in the particular portfolio I've selected I'm using Google ...