Portfolio Optimization with Application in Matlab

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Vysoká škola báňská - Technická univerzita Ostrava

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In this thesis we verify and compare the out-of-sample performance of following strategies: naive, Markowitz and conditional value at risk. For calculation, we choose 43 stocks that are components of Hang Seng Index from Hong Kong Stock Exchange and apply the data from 2006 to 2016. The calculation is mainly done using Matlab. In the thesis we apply two different approaches. The first is simple strategy, which is to invest in a constant weight to portfolio. Then we apply rolling window strategy, which is to decide weight for investment use the latest data. We make comparison and choose the strategies that are not dominated.

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Matlab, Portfolio optimization, Naive strategy, Markowitz model, Conditional value at risk, Backtesting, Performance measure

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