Welcome to Portfolio Analysis!

Introduzione all'analisi di portafoglio in Python

Charlotte Werger

Data Scientist

Hi! My name is Charlotte

Charlotte Werger

Introduzione all'analisi di portafoglio in Python

What is a portfolio

A portfolio of five US stocks

Introduzione all'analisi di portafoglio in Python

Why do we need portfolio analysis

Charts related to portfolio analysis

Introduzione all'analisi di portafoglio in Python

Portfolio versus fund versus index

  • Portfolio: a collection of investments (stocks, bonds, commodities, other funds) often owned by an individual

  • Fund: a pool of investments that is managed by a professional fund manager. Individual investors buy "units" of the fund and the manager invests the money

  • Index: A smaller sample of the market that is representative of the whole, e.g. S&P500, Nasdaq, Russell 2000, MSCI World Index

Introduzione all'analisi di portafoglio in Python

Active versus passive investing

  • Passive investing: following a benchmark as closely as possible
  • Active investing: taking active "bets" that are different from a benchmark
  • Long only strategies: small deviations from a benchmark
  • Hedgefunds: no benchmark but 'total return strategies'

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Active versus passive investor

Introduzione all'analisi di portafoglio in Python

Diversification

  1. Single stock investments expose you to: a sudden change in management, disappointing financial performance, weak economy, an industry slump, etc
  2. Good diversification means combining stocks that are different: risk, cyclical, counter-cyclical, industry, country

Diversifying eggs across three baskets

Introduzione all'analisi di portafoglio in Python

Typical portfolio strategies

  • Equal weighted portfolios
  • Market-cap weighted portfolios
  • Risk-return optimized portfolios

Equal Weighted and Market Cap Weighted portfolio weights

Introduzione all'analisi di portafoglio in Python

Let's practice!

Introduzione all'analisi di portafoglio in Python

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