Final Project Using Stock Data Collected During the Semester

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Final Project Using Stock Data Collected During the Semester

  1. Be sure your data is listed so that each column is a different stock and the rows contain the prices for each day of your collection.
  Stock 1 Stock 2 Stock 3… Stock 10
1/1/17        
1/2/17        
1/32/174        
  HPR1 HPR2 HPR3 HPR1
  Volatility1 Volatility2 Volatility3 Volatility10
Investment $10,000 $10,000 $10,000 $10,000

 

  1. Compute the holding period return for each. Here is a website that will help: http://financetrain.com/how-to-calculate-the-holding-period-returns/

 

  1. Compute the annualized volatility for each of your stocks:

https://www.fool.com/knowledge-center/how-to-calculate-annualized-volatility.aspx

 

  1. Compute the return on an equally weighted portfolio of your ten stock.https://www.boundless.com/finance/textbooks/boundless-finance-textbook/introduction-to-risk-and-return-8/implications-across-portfolios-80/calculating-expected-portfolio-returns-349-3894/

 

  1. Construct a correlation matrix for the ten stocks in your spreadsheet.

www.ruf.rice.edu/~admn543/Correlation%20matrix%20steps.doc

  1. Using the correlation matrix, construct 6 portfolios of two stocks each. Find 2 portfolios of positively correlated stocks, 2 portfolios of negatively correlated stocks and 2 portfolios of stocks that have correlations that are as close to zero as you have.

 

  1. Compare the portfolio returns you get to the individual returns of the stock that comprise them.

 

  1. Lastly, create portfolio of 5 stocks of your own choosing and weight. Compute the daily value of that portfolio, then use this column to determine the holding period return and volatility of your self-constructed portfolio.
Closing Price(USD)(daily)
1/1/2019
1/2/2019 18.83 7.11 46.93 29.540001 101.120003 9.99 6.92 5.79 53.529999 16.5
1/3/2019 17.05 7.05 46.639999 29.58 97.400002 9.76 6.74 5.68 52.560001 15.77
1/4/2019 19 7.6 47.57 30.34 101.93 10.52 7.04 5.95 55.130001 16.24
1/5/2019
1/6/2019
1/7/2019 20.57 7.57 46.950001 30.889999 102.059998 5.24 7.16 6.21 55.610001 16.610001
1/8/2019 20.75 7.7 47.48 31.280001 102.800003 5.45 7.49 6.4 55.459999 16.690001
1/9/2019 20.19 7.55 46.57 30.1 104.269997 6.09 7.78 6.28 56.380001 17.09
1/10/2019 19.74 6.36 47.07 30.4 103.599998 6.1 7.99 6.22 56.439999 17.110001
1/11/2019 20.27 6.34 47.34 30.870001 102.800003 6.55 8.71 6.28 56.689999 17.33
1/12/2019
1/13/2019
1/14/2019 20.23 6.4 47.150002 30.620001 102.050003 6.26 8.75 6.31 58.93 17.040001
1/15/2019 20.38 6.15 47.57 30.6 105.010002 6.75 8.75 6.54 61.380001 16.84
1/16/2019 19.73 6.1 46.919998 30.559999 105.379997 6.56 8.73 5.64 62.189999 16.639999
1/17/2019 20.25 6.2 47.060001 30.639999 106.120003 6.25 8.81 5.74 62.470001 16.52
1/18/2019 20.77 6.36 47.610001 30.959999 107.709999 6.3 8.95 6.18 63.119999 16.879999
1/19/2019
1/20/2019
1/21/2019
1/22/2019 19.76 6.19 47.720001 30.58 105.68 6.04 8.66 5.93 61.849998 16.66
1/23/2019 19.8 6.41 48.27 30.889999 106.709999 5.99 8.66 5.99 62.130001 16.68
1/24/2019 20.85 6.43 47.689999 30.6 106.199997 6.09 8.65 6.17 62.709999 17.5
1/25/2019 21.93 6.33 47.369999 30.66 107.169998 6.14 8.87 6.4 64.019997 18.57
1/26/2019
1/27/2019
1/28/2019 20.18 6.21 47.169998 30.67 105.080002 5.73 8.75 6.34 63.849998 18.360001
1/29/2019 19.25 5.78 47.400002 30.700001 102.940002 5.67 8.61 6.43 63.209999 18.129999
1/30/2019 23.09 5.8 47.860001 29.370001 106.379997 5.66 8.96 6.57 64.220001 18.370001
1/31/2019 24.41 6.03 48.130001 30.059999 104.43 6.04 9.14 6.68 64.459999 18.530001

Last Updated on October 15, 2019 by Essay Pro