Quantitative Analyst for a FinTech investing platform. This platform aims to offer clients a one-stop online investment solution for their retirement portfolios that’s both inexpensive and high quality. (Think about Wealthfront (Links to an external site.) or Betterment (Links to an external site.)). To keep the costs low, the firm uses algorithms to build each client's portfolio. The algorithms choose from various investment styles and options. You've been tasked with evaluating four new investment options for inclusion in the client portfolios. Legendary fund and hedge-fund managers run all four selections. (People sometimes refer to these managers as whales because of the large amount of money that they manage). You’ll need to determine the fund with the most investment potential based on key risk-management metrics: the daily returns, standard deviations, Sharpe ratios, and betas.

👨🏿‍⚖️click here to understand how Quantitiave analysis help businesses

Quantitative Analyst 📈💡

STEP 1

• Analyze the Performance

👨🏿‍⚖️Analyze the data to determine if any of the portfolios outperform the broader stock market, which is the S&P 500

👨🏿‍⚖️This is 4 Fund Porfolio including S&P500

We can infer that no porfolio signifcantly outperformed the broader stock market

STEP 2

• Analyze the Volatility

👨🏿‍⚖️Analyze the volatility of each of the four fund portfolios and of the S&P 500 Index by using box plots.

👨🏿‍⚖️ Why do we use Box plot ? click here

💡Most volatile is plot with the greatest spread Least volatile is plot with the smallest spread

STEP 3

• Analyze the Risk

👨🏿‍⚖️Evaluate the risk profile of each portfolio by using the standard deviation and the beta

Standard deviation

Rolling Metrics

👨🏿‍⚖️rolling metrics are good for start to end dates click here to learn more

On a 21 day rolling period there was no porfolio risk more than S&P500

STEP 4

• Analyze the Risk to Return

Risk to Return

Sharp Ratios

📈Click Risk to return or Sharp Ratio to learn more

Sharp ratio Bar Graph

📈 Graphs tell us a lot information click here to learn more on when to use certain graphs

STEP 5

• Diversify the Portfolio

👨🏿‍⚖️evaluate how the portfolios react relative to the broader market

BERKSHIRE HATHAWAY

TIGER GLOBAL

👨🏿‍⚖️Tiger global has less sensible movement then Berkshire we can can visual see the difference

📈Tiger global is the recommended portfolio for fund offerings compared to Berkshire

REQUIREMENTS

As of 5/4/22

PYTHON 3.10 click here

PANDAS click here

PATHLIBS click here

JUPYTER LAB click here

INSTALLATION

👨🏿‍⚖️install zip downloand or clone

click here for zip file

Click here to visit GITHUB for CLONE

LICENSE

Open to Experiment

BY:ROBERT SMITH

CREDIT: UC BERKELEY

EMAIL - [email protected] for Colloboration

FACTS

Risk management and portfolio diversification are two key aims of quantitative analysis.Metrics like the variance, beta, and rolling beta, can be calculated per portfolios. The purpose will be to determine the volatility of the portfolios relative to the market, as represented by the S&P 500. By finding the beta, you’ll be able to assess the risk profile of each portfolio.

📈Quantitative Analyst made simple with pandas