Conteúdo do Curso

Introduction to Portfolio Management with Python

1. Portfolio Analysis Basics

What You Will Learn Investing Basics What is Portfolio?Portfolio Returns Measuring Risk of Portfolio Annualized Return Annualized Risk

2. Portfolio Optimization Basics

Risk Adjusted Return Overview of Modern Portfolio Theory Markowitz Portfolios Challenge: Computing GMV Portfolio Challenge: Computing MSR Portfolio

3. Factor Investing

Introduction to Factor Analysis The Capital Asset Pricing Model The Fama-French Factor Model The 5-factor Model

Annualized Risk

Now, we're going to discuss annualization in terms of risk.

In practice, it is defined in a way that is analogical to the annualized return, and majorly used for comparing risk of different assets.

Risk measured by standard deviation the annualized value can generally be calculated using the following formula:

So, for example, if we're working with monthly risk - then annualized one could be computed using the next expression:

Or, in case of daily risk, to annualize we use time period equal to 252, since it is an approximate number of trading days in a year (excluding weekends and holidays), and the following expression is used for computing:

Below is a code example for computing annualized risks for the instance provided above:


              123456789
            
# Computing annualized risk for Nvidia
Nvidia_annualized = 0.007 * 252 ** 0.5
print('Nvidia:')
print(Nvidia_annualized)

# Computing annualized risk for AMD
AMD_annualized = 0.03 * 12 ** 0.5
print('AMD:')
print(AMD_annualized)

Tarefa

In this task you need to:

Compute the annualized risk vol_sony_annualized for the Sony Group Corporation stocks, using the given daily risk vol_sony, by defining the required time period T_sony, and applying the formula for annualized risk.
Compute the annualized risk vol_cola_annualized for the Coca-Cola Company stocks, using the given monthly risk vol_cola, by defining the required time period T_cola, and applying the formula for annualized risk.

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Seção 1. Capítulo 7

Annualized Risk

Now, we're going to discuss annualization in terms of risk.

In practice, it is defined in a way that is analogical to the annualized return, and majorly used for comparing risk of different assets.

Risk measured by standard deviation the annualized value can generally be calculated using the following formula:

So, for example, if we're working with monthly risk - then annualized one could be computed using the next expression:

Below is a code example for computing annualized risks for the instance provided above:


              123456789
            
# Computing annualized risk for Nvidia
Nvidia_annualized = 0.007 * 252 ** 0.5
print('Nvidia:')
print(Nvidia_annualized)

# Computing annualized risk for AMD
AMD_annualized = 0.03 * 12 ** 0.5
print('AMD:')
print(AMD_annualized)

Tarefa

In this task you need to:

Compute the annualized risk vol_sony_annualized for the Sony Group Corporation stocks, using the given daily risk vol_sony, by defining the required time period T_sony, and applying the formula for annualized risk.
Compute the annualized risk vol_cola_annualized for the Coca-Cola Company stocks, using the given monthly risk vol_cola, by defining the required time period T_cola, and applying the formula for annualized risk.

Mude para o desktop para praticar no mundo realContinue de onde você está usando uma das opções abaixo

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Seção 1. Capítulo 7

Annualized Risk

Now, we're going to discuss annualization in terms of risk.

In practice, it is defined in a way that is analogical to the annualized return, and majorly used for comparing risk of different assets.

Risk measured by standard deviation the annualized value can generally be calculated using the following formula:

So, for example, if we're working with monthly risk - then annualized one could be computed using the next expression:

Below is a code example for computing annualized risks for the instance provided above:


              123456789
            
# Computing annualized risk for Nvidia
Nvidia_annualized = 0.007 * 252 ** 0.5
print('Nvidia:')
print(Nvidia_annualized)

# Computing annualized risk for AMD
AMD_annualized = 0.03 * 12 ** 0.5
print('AMD:')
print(AMD_annualized)

Tarefa

In this task you need to:

Compute the annualized risk vol_sony_annualized for the Sony Group Corporation stocks, using the given daily risk vol_sony, by defining the required time period T_sony, and applying the formula for annualized risk.
Compute the annualized risk vol_cola_annualized for the Coca-Cola Company stocks, using the given monthly risk vol_cola, by defining the required time period T_cola, and applying the formula for annualized risk.

Mude para o desktop para praticar no mundo realContinue de onde você está usando uma das opções abaixo

Tudo estava claro?

Obrigado pelo seu feedback!

Now, we're going to discuss annualization in terms of risk.

In practice, it is defined in a way that is analogical to the annualized return, and majorly used for comparing risk of different assets.

Risk measured by standard deviation the annualized value can generally be calculated using the following formula:

So, for example, if we're working with monthly risk - then annualized one could be computed using the next expression:

Below is a code example for computing annualized risks for the instance provided above:


              123456789
            
# Computing annualized risk for Nvidia
Nvidia_annualized = 0.007 * 252 ** 0.5
print('Nvidia:')
print(Nvidia_annualized)

# Computing annualized risk for AMD
AMD_annualized = 0.03 * 12 ** 0.5
print('AMD:')
print(AMD_annualized)

Tarefa

In this task you need to:

Compute the annualized risk vol_sony_annualized for the Sony Group Corporation stocks, using the given daily risk vol_sony, by defining the required time period T_sony, and applying the formula for annualized risk.
Compute the annualized risk vol_cola_annualized for the Coca-Cola Company stocks, using the given monthly risk vol_cola, by defining the required time period T_cola, and applying the formula for annualized risk.

Mude para o desktop para praticar no mundo realContinue de onde você está usando uma das opções abaixo

Seção 1. Capítulo 7

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