- Understanding the importance of diversification and a portfolio of uncorrelated returns, I plotted the 5-year returns of several equities, ETFs, and commodities against SPY.
- I also used linear regression to calculate the beta and correlation, and generated a correlation matrix and a heatmap.
- Imported 5-Year adjusted closing prices of my stock investments using Yahoo Finance
- Extracted percent change using NumPy
- Used linear regression to calculate slope (beta) and correlation
- Plotted % returns and linear regression line
- Created a correlation matrix and heatmap
- David Ng, Professor of Finance, Cornell University - Taught my Finance Analytics Class
- Principles by Ray Dalio
- Ray Dalio Breaks Down His Holy Grail
- YT Tutorial: Calculating the Correlations Between Stocks Using Python by Kevin Mooney