## Value at Risk via Variance – Covariance Method

This post presents how to estimate Value at Risk via a variance – covariance method. The following steps outline how to calculate Value at Risk using this method. 1.) Gather stock data and calculate periodic returns...

## Tracking a Portfolio With Python

Link to Project: The following Python project allows a user to track their stock portfolio in Python. Since this is a beta version and will continually need adjustments, any changes suggested will be considered. You can also...

## Simple Portfolio Rebalancing Model In Python

Intuition: Rebalancing a portfolio can be thought of as resetting the weights of individual assets chosen. For example, we could have a portfolio of four different assets with an even 25% allocated in each. These weightings can...

## Historical Value at Risk With Python

Background: Value at risk is the maximum loss possible with a given level of confidence over a predetermined time frame. This post will specifically cover historical VaR, or nonparametric method due to the fact we are using prior...

## Value at Risk via a Monte Carlo Approach

Value at Risk is the maximum loss on an investment over a given time period with a given confidence level. There are a few different approaches we can take to estimating Value at Risk. Parametric Approach: A historical simulation...

## Bootstrap Sampling for Stock Simulations in Python

in previous posts, I have discussed Monte Carlo simulations specifically in regards to generating future stock prices. We will now examine a bootstrap sampling technique in regards to simulating stock...

## Monte Carlo Simulations of Future Stock Prices in Python

A Monte Carlo simulation is a method that allows for the generation of future potential outcomes of a given event. In this case, we are trying to model the price pattern of a given stock or portfolio of assets a...

## Examining Index and Sectoral P/E Ratios With Python (and R)

Given today’s frothy market environment, it is relatively hard to find value stocks within a thick mire of growth opportunities. As investors, we can a examine a representative market index in order to gauge where the...