Questions tagged [portfolio]

Questions relating to the collection of an individual's investments, looked at at a whole.

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31 views

How to calculate cost basis for list of incongruent batches of buy and sell transactions (forex trading)

How can I calculate the cost basis for my forex portfolio at any given time? I'm trying to build a spreadsheet to track forex trading of cryptocurrency pairs. Specifically I'm looking at XMR-BTC ...
0 votes
3 answers
232 views

What percentage of funds to allocate to different investments optimally with rebalancing?

There are 2 types of managed funds. The first is principal guaranteed with a fixed 5% annual return. The second's returns is between 20% to -20% annually. Is there a way to roughly calculate what ...
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1 answer
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How to calculate leverage ratio while buying stocks?

I was recently studying 2008 research study by Yale researchers Ian Ayres and Barry J. Nalebuff in which they tell to use 2 to 1 leverage ratio while buying stocks in your young age and gradually ...
6 votes
2 answers
2k views

What is the real return of a portfolio? Markowitz vs "real" return

I am working with mean variance optimization (MVO) and as such after "training" my model I test the results on a test dataset. Markowitz states that the return of a portfolio is the "...
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1 answer
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Scratching my head about the modified dietz method

I'm trying to compute the money weighted rate of return for my crypto investments using the modified dietz method, as I believe this is the golden standard to measure investment. The formula is quite ...
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3 votes
1 answer
173 views

Analyze the probability of a porfolio increasing (or decreasing) by certain amounts

I would like to build a portfolio (of funds) which I don't need to manage often. In principle I am relatively happy to allocate the money in higher risk funds, since I don't plan on using it in the ...
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56 views

Building a portfolio based on possible personal finance scenarios

I would like to start a portfolio of assets which I don't have to manage day to day. I don't have a specific savings goal in mind but have a number of scenarios where I might want to withdraw money. E....
3 votes
0 answers
60 views

Stock re-balancing in equal weighted portfolio

I currently have 20 stocks* in my portfolio (market value $300,000) which are equal weighted (5%). I am a long term investor and retired. *As part of the stock portfolio, I actually have 19 stocks and ...
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What is the weight of risky asset in the optimal complete portfolio?

I have 5 different stocks in a market value weighted portfolio. I found that the expected return of this portfolio is 0,008444379 and the variance is 0,001498836. I know that the risk free rate is 0,4%...
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1 vote
1 answer
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How do I Calculate this Estimated Weighted Return?

I am trying to figure out how to calculate an estimated weighted return. For example, imagine I have the following portfolio: | ETF | Quantity | Value | Weight | Estimated Return | Estimated ...
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How can I calculate the total return of my portfolio when it is rebalanced annually?

I have a portfolio and I rebalanced it every year. The portfolio return is 6%, 8%, 3% in years 1,2,3. How can I calculate the total return of the portfolio?
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1 answer
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Calculating portfolio returns from multiple stocks using XIRR

I am confused and would like some clarification. For around four years I have been building a portfolio of 30 stocks and I would like to calculate the portfolio returns as accurately as possible over ...
5 votes
6 answers
736 views

Questions on a 60/40 portfolio outperforming stocks over the last 20 years

My question is based on a particular segment of a show on YouTube. Segment starts at 19:42 (linked) and ends around the 25-ish minute mark. (It's the Money Guy Show if you're curious.) I was surprised ...
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19 votes
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Why would long-term investor care about volatility? [duplicate]

I'm 35 and I want to start investing for my retirement. My question is, why would you care about volatility if your investment horizon is 30+ years? In order to get a more clear picture of volatility ...
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Is there a quantitative answer to how frequently I should optimize my portfolio?

I'm using Markowitz Mean-Variance Optimization to rebalance my portfolio of 30 holdings. I'm trying to select the best balance of funds that will return 10% with the minimum risk. I understand that ...
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1 answer
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I don't have a folio number or the documents of the shares

My father have bought few shares from different companies long ago and lost his documents. And now apart from the company names he doesn't have any other information like folio number or document ...
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1 vote
1 answer
99 views

Money-Weighted-Return (MWR) or Time-Weighted-Return (TWR)?

Assume, I monthly invest a fixed part of my income. I strictly transfer this money to my broker account and never take money off (transfer-rule). There, I usually (but not always) immediately add to a ...
6 votes
3 answers
2k views

Do bond funds have an inherent advantage over individual bonds within a portfolio?

Background: I am constructing a simple ETF portfolio consisting of 70% stocks and 30% bonds. Every three months, I will add money into the portfolio, and rebalance the portfolio to restore its 70/30 ...
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Calculations for my Portfolio

First excuse my maths and limited finance knowledge. I am testing investing in crypto and trying to calculate my ROIs, Profit/Loss etc and getting stuck a bit and was wondering if anyone can help! ...
0 votes
3 answers
252 views

Will a stock always correct itself on the ex-div date?

I have a position in a stock (oil company) which has already announced a ~7% dividend with the ex-div date set to 13 May and payment date to 7 June. I am looking to double my position in this stock ...
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1 answer
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What does "trading in portfolio" mean?

On this Wikipedia page about value at risk, at the end of the second paragraph, it says "This assumes mark-to-market pricing, and no trading in the portfolio." What exactly does "...
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1 vote
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117 views

How to record personal portfolio appreciation?

I'd like to know how to record for the appreciation of my investment portfolio. The idea of not recording it; and then recording it as revenue once I sell it seems a bit off to me. I plan to hold my ...
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2 votes
1 answer
103 views

How to allocate assets between asset types and tax-benefit accounts?

I hoped I could simply put all my funds into a TDF in a tax credit account and done with it, but it seems it's not that easy. I'm trying to reallocate to these accounts: Individual Retirement Pension(...
3 votes
5 answers
148 views

Are Gold and similar assets a good way to diversify your portfolio to protect value?

If the goal is to have a diversified portfolio (more towards the safe, conservative, long-term side), should you include assets that hold value, but are not productive per se, like gold, silver, coins,...
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2 answers
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Can I hedge on a long position of less than 100 shares and if not is there an alternative strategy?

Good Afternoon All, Quite frankly I'm stumped. I am aware of a covered position under normal circumstances, however in this particular situation there are less than 100 shares and I'd really like to ...
2 votes
1 answer
670 views

gnucash: How to set currency of a stocks account? Moving stocks from one stock account to another with different currencies

I am using gnucash for tracking my stocks, ETFs and cryptocurrencies. For the latter, I often heard the recommendation to treat them as a security. As such, I added a CRYPTO namespace in the ...
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1 answer
149 views

How to interpret XIRR?

I'm trying to calculate an investment's rate of return but getting very strange results. I made 6 different example scenarios to understand the logic behind XIRR calculation and just to test the ...
1 vote
2 answers
140 views

How to calculate portfolio performance?

How to calculate portfolio performance when the profit comes from 1) Selling the securities, 2) Getting the dividends? Imagine the following portfolio and transactions. 2018 - Buy 100 shares of Exxon ...
3 votes
1 answer
110 views

personal portfolio return calculation problem

I want to measure and evaluate the performance of my personal portfolio. However, I am concerned about confusion and miscalculation. Because when I calculate the time-weighted portfolio return rate in ...
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2 votes
2 answers
222 views

How to calculate ROI on my stock portfolio, from transactions logs?

I have a spreadsheet that contains all my current stock positions in one sheet (with how much I invested and the unrealized gain for each current position) and another sheet with my past positions (...
0 votes
1 answer
55 views

calculating the std devation of portfolio

If I have a portfolio with hypothetical time-weighted returns by month of the following: Jan-20 = 2% Feb-20 = 5% Mar-20 = 50% Apr-20 = 6% May-20 = -5% Jun-20 = 0% Jul-20 = -10% Aug-20 = 4% Sep-20 = 20%...
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56 views

Rebalancing for dollar's buying power at the time of the original deposit

I want to create a portfolio that would be rebalanced according to the relative buying power of dollar at the time of the deposit, but I'm not sure how to do it. I'm not familiar with financial ...
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5 votes
1 answer
733 views

Should retail investors learn and use the capital asset pricing model (CAPM)?

I heard that the capital asset pricing model (CAPM) is commonly studied by finance students, and can help in controlling risk in stock portfolios. The CAPM looks rather complex as it seems to require ...
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1 answer
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Portfolio TWR vs MWR

I've been investing and trading a little bit and in my portfolios performance overview I saw TWR (time weighted returns) and MWR (money weighted returns). My MWR is 26.82%, whereas my TWR is -515.00% ...
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0 answers
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Portfolio diversification into different currencies

Does it make sense to diversify the portfolio into different currencies if they are in any case correlated with each other or is it not so?
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2 answers
193 views

How would the discovery of El Dorado impact the price of gold? [closed]

I have gold in my long-term investment portfolio and I am worried about sudden over-supplies of gold. If a City of Gold (e.g. El Dorado) or the Nazi gold train is discovered in the future, how can I ...
1 vote
0 answers
76 views

Core-Satellite Portfolio Building Strategy

I recently heard of the Core Satellite investment strategy and found it very interesting and smart. However, I failed to find other comparable portfolio building strategies and subsequently, a ...
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Selecting lots when rebalancing

I'm about to rebalance my portfolio of ETFs. For the selling part, I have several lots to choose from, and I'm not sure if it matters much which one I pick. All lots have long term capital gains. ...
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In what ratio should I buy options to preserve the diversification effect of the underlying stock portfolio?

I want to invest in a certain stock portfolio using long down-and-out barrier options. But I am not sure in what ratio to buy the barrier options to retain the same exposure to the volatility of the ...
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What would happen to a typical investment portfolio if the dollar collapses?

Let's say I have an investment portfolio with diversified US stocks and diversified US bonds. How would a dollar collapse affect this portfolio? And which component of the portfolio is less likely ...
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1 vote
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Do I have to reallocate all my funds every time I optimize my portfolio or is it only for new funds?

I've developed a code to optimize the new money coming into my etoro portfolio. However, I do not reallocate the funds that are already there. Should I? Context: I'm young and starting to earn a ...
0 votes
1 answer
164 views

Is dynamic hedging a combination of writing covered calls and long puts?

Trying to figure out a simplified dynamic hedging strategy without getting into too much math. Based on Antifragile by NN Taleb, it appears an antifragile portfolio could be constructed with short ...
0 votes
1 answer
94 views

Testing the CAPM using the Fama-MacBeth (1973) Approach

I need to conduct the Fama-MacBeth (FM) procedure for my thesis to test the ability of the Fama-French (2015) and Carhart (1997) six-factor model to predict future expected returns. In univariate ...
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1 answer
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Public filing of investment fund portfolios - US Funds

I follow several investment funds. For some European ones, I can go to the public authority and see their quarterly filings with a detailed composition of the portfolio. For the US, where could I ...
2 votes
1 answer
435 views

How to calculate annualized rate of return over multiple transactions

The annual rate of return on an investment can be calculated as And the top response to this question suggests that the return on a portfolio of such purchases is simply the weighted average of ...
1 vote
3 answers
320 views

The best way to build a long/short portfolio

For several mutual funds, I have their performance (in %) as well as their TNA (in bn) on a monthly basis (months 1 to 193). Thanks to a previous step, I know for each fund, each month, whether I ...
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Calculation of YTD return in case of portfolio rebalance

I want to calculate a couple of metrics for portfolio. However, only examples I can find over the internet do not cover portfolio rebalances. Suppose the following scenario: Jan 1st, buy portfolio ...
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101 views

Portfolio Historical Performance [closed]

Suppose I have a portfolio of ETFs and I want to calculate its performance over time in the past. Which metric/formulae suits it best? Which of the parameters will vary over time in this formulae? Do ...
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1 vote
3 answers
181 views

Advice: Diversify my retirement investments with a Roth IRA

I am new to investing, and also late to the game (34 yrs old), so I'm trying to make the most financially intelligent decisions I can. I'm starting a Roth IRA at the moment, and funding it with this ...
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2 votes
2 answers
80 views

Find net cumulative return from my Investment Report for a 3 month period

I have an Investment Report for a 3 month period that shows me: Number of Shares Book Cost Market Price Market Value Estimated Income Estimated Yield Total Value % How do I work out the cumulative ...

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