Sector Investing (Sector Rotation) Via Quantitative Modeling In Excel
Enhance investing by selecting the right stock sectors and using a hedge to navigate stock market downturns.
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
Unlimited lifetime access anywhere, anytime. Learn at your convenience.
Prompt email Q&A support to assist your learning
VBA scripts to automate the data updating and weight optimization process
What you will learn
Learn about Quantitative Investing & how it is different from conventional methods of investing
Know the pitfalls of buying and holding a pure stock portfolio
Know the different stocks sectors and their ETFs
Understand the concept and rationale behind sector rotation
Learn a quantitative approach to select the right sectors for investment
Learn how the use of a dynamic hedge can improve the overall investment performance
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 and perform rebalancing.
Learn how to implement a sector scoring and ranking system and incorporate a dynamic hedge.
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 what are the transaction costs involved and how to incorporate them into the model
Know how to operate the Sector Rotation Model
7 sections: ~8hrs total length
2. Concept of Sector Rotation
3. Excel Crash Course
4. Financial Mathematics
5. Building the Sector Rotation Model
6. Operating the Sector Rotation Model
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 a stock investing strategy known as Sector Rotation, from concept to implementation, whose principles are used among hedge fund professionals. While stock sectors generally tread in the same direction as the broader stock market, their individual performance can differ.
We will see in this course how to select the right sectors using ETFs to improve investment performance. Then we will learn how to incorporate a natural hedge into the system to make it more resilient against stock market shocks and downturns. The result is a robust portfolio that is much lower in risk, yet yielding comparable or even higher returns than the broad 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.