Welcome back to our series on Python for Technical Indicators! After covering Moving Averages and the Relative Strength Index (RSI), we’ll now explore another popular momentum indicator: Moving Average Convergence Divergence (MACD). Moving Average Convergence Divergence (MACD) is a popular trend-following momentum indicator. It gets its name because it tracks the relationship between a faster and a…
In the dynamic world of financial markets, technical indicators are indispensable tools for traders and analysts seeking to understand market sentiment and predict potential price movements. Our ongoing series exploring Python for finance now delves into another cornerstone indicator: the Relative Strength Index (RSI). This powerful momentum oscillator helps gauge the speed and persistence of price…
Beta neutrality is a powerful risk management strategy that can help protect your investments from broad market movements. In this article, I’ll walk you through how to analyze and neutralize the beta of a portfolio using Python, complete with code examples you can adapt for your own investments. What is Beta Neutrality? Beta neutrality is…
In our series on Python for finance, we’ve covered portfolio construction , risk management , backtesting , and optimization . Now, we’ll explore how to use Python to implement technical indicators, starting with moving averages. Disclaimer: This article was drafted with the assistance of artificial intelligence and reviewed by the editor prior to publication to ensure…
Welcome to the fifth article in our Python Portfolio Management series! So far, we’ve covered the basics of portfolio management, building efficient frontiers, implementing risk management techniques, and calculating beta and dollar sensitivity. Today, we’ll explore how to build a backtesting framework to evaluate the performance of your investment strategies using Python. Backtesting is a…
Risk management is the shield that protects your portfolio from unexpected losses. Whether it’s a sudden market dip or a prolonged downturn, understanding and quantifying risk is essential for any investor. In this post, we’ll explore three practical techniques—Value at Risk (VaR), Conditional VaR (CVaR), and stress testing—and bring them to life using Python with…
Portfolio theory is a powerful framework that helps investors balance risk and return by constructing optimal portfolios. In this second post in the series portfolio management with Python, we’ll dive into its core ideas—diversification, correlation, and the Efficient Frontier—building on the basics from Post 1. Using Python and real-world stock data from Apple (AAPL), Microsoft…
Portfolio management is a crucial skill for any investor, whether you’re managing your own savings or working in finance. At its core, portfolio management is about balancing risk and return to achieve your financial goals. With the rise of powerful tools like Python, even beginners can dive into this world and start analyzing real-world data…