Why do the prices of some companies’ stocks seem to move up and down together while others move separately? What does portfolio “diversification” really mean and how important is it? What should the price of a stock be? How can we discover and exploit the relationships between equity prices automatically? We’ll examine these questions, and others, from a computational point of view. You will learn many of the principles and algorithms that hedge funds and investment professionals use to maximize return and reduce risk in equity portfolios.

À partir de la leçon

Efficient Markets Hypothesis and Event Studies, Portfolio Optimization and the Efficient Frontier

In this module, you will learn about information may affect equity prices and company value, understand efficient market hypothesis and how event studies work; Also, you will learn about the inputs and outputs of a portfolio optimizer, correlation and covariance, Mean Variance Optimization, and the Efficient Frontier.