In this article, we will analyze a previously suggested portfolio and provide recommendations for a new portfolio for the upcoming week starting from 15th May 2023.
Previous Portfolio Returns and Analysis
The previously advised portfolio reaped good returns. The previously advised portfolios, the Sharpe Ratio optimized portfolio, and the Machine Learning optimized portfolio both yielded positive returns. The Sharpe Ratio optimized portfolio posted a weekly return of 2.6% (Yearly 261%) and the Machine Learning optimized portfolio posted a weekly return of 1.4% (Yearly 104.%).
The huge differences in the returns could be due to the portfolio optimization constraint I had embarked on. The Sharpe Ration optimized portfolio was constrained to have a maximum of 25% of its allocation investment in any given stock. For Machine Learning optimized portfolio, the maximum allocation for each equity was just 10%. The machine learning algorithm performed as expected. The portfolio is constrained at a maximum of 25% for each equity.
New Portfolios for the period 15th May 2023 to 19th May 2023
For the period of 15th May 2023 to 19th May 2023, I would recommend considering two new portfolios, a new Sharpe Ratio optimized portfolio and a new Machine Learning and Sharpe Ratio optimized portfolio.
- New Sharpe Ratio Optimized Portfolio
The new Sharpe Ratio optimized portfolio has a total available investment of ₹100,428.30, with a total investment of ₹101,184.90 and excess cash/new investment of ₹-756.60. The portfolio has a volatility of 3.21%, a Sharpe ratio of -1.07, and is expected to yield returns of 3.56%. The portfolio is constrained at a maximum of 10% for each equity.
Total Available Investment: ₹100,428.30
Total Investment: ₹101,184.90
Excess Cash/New Investment: ₹-756.60
Volatility: 3.21%
Sharpe Ratio: -1.07
Expected Portfolio Returns: 3.56%
- New Machine Learning and Sharpe Ratio Optimized Portfolio
The new Machine Learning and Sharpe Ratio optimized portfolio have a total available investment of ₹104278.15, with a total investment of ₹102237.45 and excess cash/new investment of ₹2040.7. The portfolio has a volatility of 3.21%, a Sharpe ratio of -1.07, and is expected to yield returns of 3.56%.
Total Available Investment: ₹104278.15
Total Investment: ₹102237.45
Excess Cash/New Investment: ₹2040.7
Volatility: 3.21%
Sharpe Ratio: -1.07
Expected Portfolio Returns: 3.56%
Based on these numbers, it seems that the new portfolios have similar volatility, Sharpe ratios, and expected returns to the previous portfolios. Therefore, I would recommend considering these new portfolios for investment in the upcoming week. However, please note that investing in the stock market comes with risks, and past performance is not always indicative of future results. It is important to do your own research and consult with a financial advisor before making any investment decisions.
Disclaimer: The information provided is for general informational purposes only and should not be considered as financial advice. Any investment in the stock market carries risks, and past performance is not necessarily indicative of future results. It is important to do your own research and consult with a financial advisor before making any investment decisions. We do not make any guarantees or warranties about the completeness, reliability, or accuracy of the information provided, and we are not liable for any losses or damages arising from the use of this information.
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