Asset Allocation (Risk Parity) Via Quantitative Modeling In Excel
Master the principles of a resilient investing strategy using stocks & bond ETFs (called Risk Parity) used in hedge funds.
Immediate implementation upon learning
Approx. 8 hours to complete
What you will get in this course
Fully completed model file that you can use for live investing
Practice sheets on financial mathematics and excel functions with solutions
Guided step-by-step model building process complete with templates
Free Excel-based resources (from the web) to download price data from yahoo finance in bulk
VBA scripts to automate the data updating and weight optimization process
Unlimited lifetime access anywhere, anytime. Learn at your convenience.
Prompt email Q&A support to assist your learning
What you will learn
Learn about Quantitative Investing & how it is different from conventional methods of investing
Master the science and art of diversification to build an all-weather portfolio that remains robust under harsh market conditions
Know the pitfalls of buy and hold and why traditional asset allocation methods such as 50/50 or 60/40 are not ideal
Understand the concept of risk and how to look at investments from the perspective of risk
Know the criteria to choose the right assets in portfolio construction
Master an established quantitative method used in hedge funds called Risk Parity to allocate capital across different assets
Learn critical Excel functions required for modelling.
Understand the intuition behind the math of key financial concepts and their implementation.
Know how to model a buy and hold, perform rebalancing and weights optimization
Know about transaction costs and how to incorporate them into the model
Understand the concept of leverage, how we can use it to boost our returns and how to model it.
Learn the concept and math behind key investment performance metrics such as Sharpe Ratio
Know how to operate the Risk Parity model
7 sections: ~8hrs total length
2. Concept of All-Weather Investing
3. Excel Crash Course
4. Financial Mathematics
5. Building the All-Weather Risk Parity Model
6. Risk Parity Operations
7. Bonus: VBA Scripts
A keen learning attitude with an open mind
Basic knowledge in Math and Statistics is preferable, but not compulsory
Basic knowledge in Excel is preferable, but not compulsory
We will teach you in-depth an all-weather investing approach known as Risk Parity, from concept to implementation, whose principles are used among hedge fund professionals. Ray Dalio, the founder of the largest hedge fund Bridgewater Associates, is the first to launch a fund based on Risk Parity principles.
Risk Parity is a powerful quantitative investing strategy grounded in well-established theory and common sense. It is capable of creating robust portfolios that are much lower in risk. It remains resilient in harsh markets while yielding comparable returns to the broader stock market.
* The strategy taught in this course is applied to the US market.
Say good bye to chart reading, thick annual reports, and an overload of market news
All investment decisions are driven by the model we will build in this course.
5 minutes of your time each day to update the model is all you need
The model keeps you on course during times of market stress. The result is consistency.
We use Excel. No programming experience is required.
No need to pay for expensive tools or data subscriptions. We use only free resources.