Financial instruments correlation analysis based on Yahoo Finance data
Data Science Club - Summer Challenge Diversified Investment Portfolio – with a Touch of Data Science
The Task:
- Download historical data for the following financial instruments: Apple Inc. (AAPL), Microsoft Corp. (MSFT), Amazon.com Inc. (AMZN), Tesla Inc. (TSLA), Alphabet Inc. (GOOGL), Meta Platforms Inc. (META), NVIDIA Corporation (NVDA), Berkshire Hathaway Inc. (BRK-B), Exxon Mobil Corp. (XOM), Johnson & Johnson (JNJ), Visa Inc. (V), Procter & Gamble Co. (PG), Walmart Inc. (WMT), Pfizer Inc. (PFE), The Coca-Cola Company (KO), Cisco Systems Inc. (CSCO), Chevron Corporation (CVX), PepsiCo Inc. (PEP), International Business Machines Corp. (IBM), Merck & Co. Inc. (MRK), BYD Motor Co. Ltd. (BYDDF), Clean Energy ETF (IQQH.F), Bitcoin (BTC-USD), Ethereum (ETH-USD), Paypal Holdings Inc. (PYPL), Berkshire Hathaway Inc. (BRK-A), S&P 500 ETF (CSPX.AS), Gold (GC=F), Silver (SI=F), Crude Oil (CL=F), Under Armour Inc. (UA), Gartner Inc. (IT), Developed Asia ETF (VAPU.SW), Solana (SOL-USD), Coinbase Global Inc. (COIN).
- Making a correlation analysis and finding assets that move most independently of each other.
- Choosing 4 assets that best diversify your portfolio.
- Extra Task: Let's assume that on 01.01.2021, you have invested 100 US dollars in each of the 4 assets you have chosen. Plot the value of the portfolio over time.