Quantitative Analysis of Stock Portfolio: Taking Six Technology Companies as Example

Abstract

This article introduces a quantitative analysis method of selected stocks with Python. Firstly, the portfolio weight of the six selected technology stocks with maximum Sharpe Ratio was determined. Secondly, the performance of the portfolio according to the historical data was back-tested. Also, Fama-French three-factor model was used to analyze the factors that might affect the stock price and a regression analysis was done on these factors. Through quantitative analysis, the portfolio weights with maximum Sharpe Ratio and minimum volatility of target stocks could be given out respectively.