Summary:
•Include in your paper a brief outline of the performance of your portfolio against S&P 500.
•Compare your performance on raw return as well as on risk adjusted basis, such as: Sharpe Ratio, Treynor Ratio, and Jensen’s Alpha. To do this, you must start with the daily value of your portfolio as well as that of S&P 500. Compute the daily return of your portfolio as well as that of S&P 500, run a regression, and take note of the alpha and the beta of the portfolio returns.
(You can include the two graphs and the regression output in the body of the paper.)
Body of the paper: Write your paper in a simple narrative format while addressing the following points:
1) How many transactions did you place?
How did your portfolio perform against S&P 500?
What do you think led to your portfolio under/over-performing the benchmark?
What instruments did you trade, and can you mention market events that contributed to how your portfolio performed? [note: I based my market events impacted by COVID-19] It doesn’t have to be transaction by transaction analysis; overview of your trading and mention of major events would suffice.
What lessons did you learn while managing your portfolio and what would you do differently? [ to NOT invest into “Meme-Stocks” and take stock-trading seriously by investing into better stocks- feel free to add your opinion]
2) Additional points:
- Calculate the daily and annualized return and risk of your portfolio as well as that of the benchmark (S&P 500).
Sample Solution
