Our Stock Portfolio

I picked this stock portfolio analysis project because my boyfriend and I are interested in investing some tech companies. I used Random Walk and Monte Carlo Simulation to find out the potential paths of our stocks. For the random walk exercise, I used AAPL and stimulated prices for 1000 trading days with given the mean and standard deviation of the log returns of each stock over the past 10 years. However, this is a single random walk, so it is not representative of the potential path of our stock portfolio. Thus, we use Monte Carlo Simulation to run 250 simulations for 252 trading days since the NYSE and NASDAQ have 252 trading days on average per year.

- Comparing to the initial prices and AAPL, NVDA, and BABA are more likely to grow according to our finding. AAPL seems to have the strongest growth.
- Advanced Micro Devices could potentially suffer from a price drop based on both the median and the 95% CI as the initial price is higher than both.
- The stock prices of Corning (GLW) and Lockheed Martin (LMT) seem to be constant over the 252 trading days with slight fluctuations.
- Raytheon (RNT), on the other hand, faces large fluctuations in its share prices, so not a safe investment according to this analysis.
- Boeing seems stable like Corning and Lockheed Martin with small fluctuations over the 252 trading days.

No comments:

Post a Comment