This project analyzes the risk and return characteristics of a simple equity portfolio using historical market data.
The focus is on understanding how assets behave individually and together, rather than on forecasting prices.
- historical returns and volatility
- risk–return tradeoffs across assets
- correlations and diversification effects
- portfolio-level performance and drawdowns
Daily adjusted close prices are pulled using yfinance for a small set of large-cap equities and an index ETF.
Returns are computed from price data and annualized using standard market conventions.
The pipeline:
- computes daily and annualized returns
- estimates volatility and Sharpe ratios
- evaluates correlations between assets
- tracks cumulative portfolio performance
- calculates maximum drawdown
Results are saved as plots for quick review.
python -m venv .venv
pip install -r requirements.txt
python runAnalysis.py