Python for Finance

https://youtu.be/Svmu_O6MH-4 In the world of finance, the Black-Scholes-Merton model stands out as a pivotal tool for pricing options. Developed through rigorous mathematical derivations, this model calculates the theoretical value of an option based on five essential parameters: With these components in mind, let’s dive into the implementation in Python: Step 1: Import Necessary Libraries Before […]

https://youtu.be/9GA2WlYFeBU Portfolio Optimization is an essential aspect of modern investing, and Modern Portfolio Theory (MPT) is a well-known approach to achieve an optimal portfolio. In this article, we will walk through a Python script that demonstrates how to optimize a portfolio of stocks using MPT. We will use Yahoo Finance data and the Scipy library […]

In this blog article, we will demonstrate how to calculate the Value at Risk (VaR) for a portfolio of stocks using the parametric method, also known as the variance-covariance method. The parametric method estimates VaR by assuming that portfolio returns follow a normal distribution. We will use Python and the yfinance library to download historical […]

In this blog post, we will demonstrate how to perform Value at Risk (VaR) calculations using the historical method for a portfolio of stocks. We’ll use Python and the yfinance library to download historical stock price data and then calculate VaR for an equally weighted portfolio. Setting Time Range and Tickers First, let’s set the […]