SUMMARY

Why we need to create portfolio?

 We create portfolio for increasing return and minimize the risk
 Before the portfolio formation we need to keep track of the stock trend, for that we
use different financial technique and the prominent among them is analysis of
financial statement.
 In analysis of financial statement we use horizontal, vertical as well as trend analysis
 For the portfolio formation we need to investigate the prices of stock
 We further need to assess as well as analyse the approach of investor whether the
investor is interested in investment in capital gain or dividend.
 Analyse the variance of stock
 Evaluate the market to book ratio of that particular stock along with its dividend
yield, ROI, ROA, Current Ratio, Liquid Assets, fixed assets, trend of overall stock for
every last 5 year.
 We can do analysis of the company market information as well as evaluation of that
particular company.
 Company Analysis on Python Programing
 Every kind of analysis regarding portfolio management is performed on python
whether its about trend regarding company’s price or variance in stock or its return
or its forecasting or its trend analysis or applying different econometric models (i.e.,
like ARCH, GARCH, ARIMA , FAMA & FRENCH 3 factor model, FAMA & FRENCH 5
factor model, FAMA & FRENCH 7 factor model and all type of models) run on python
and also stock standard deviation can be measured as well for that we utilized
HAMMADA Equation Model.
 We can also measure market ratios, liquidity ratios, profitability ratio on python.