Portfolio Optimization-II (handling “short” position)

Instead of using OptWeights function created in last post, we will use portfolio.optim function which is present in “tseries” library to handle “short” position stocks. Therefore make sure to have “tseries” package installed before running this code: First, lets check the weights when “short” positioning of stocks are allowed: It is same to what we[…]

Portfolio Optimization – I

What is meant by portfolio optimization? Portfolio means grouping of financial assets like Bonds, stocks etc. Portfolio optimization is the process of choosing the proportions of various assets to be held in a portfolio so that with min risk one can get maximum return. Suppose we want to make a portfolio consisting of 5 tyre[…]