/asset-allocation

Asset allocation and portfolio optimization implementations to examine how each one differs and affects the overall portfolio.

Primary LanguageJupyter Notebook

asset-allocation

Markowiz's Modern Portfolio Theory is implemented and compared with its extension of the Black-Litterman model in a simple 2-asset allocation model.

Output:

  • The graph below shows the allocations towards Tesla and Coca-cola stocks for the Minimum Volatility optimization and for the Black-Litterman one with favorable investor views regarding returns on Tesla: