Portfolio Protection - Build a Dynamic Risk Budget Algorithm in Python

Protect your investments with this comprehensive bundle, designed to help you build a dynamic risk budget algorithm in Python. Starting with a project preview, you’ll dive into portfolio insurance strategies by loading key financial datasets, including industry returns, firm data, and market size information. You’ll also learn how to calculate the total market index, an essential step for analyzing market trends and setting the foundation for your risk management strategy.

Next, you'll explore the Constant Proportion Portfolio Insurance (CPPI) strategy, understanding the key parameters and initial values needed to design an effective portfolio protection model. This bundle guides you through backtesting the strategy, ensuring you can assess its performance in various market conditions. Finally, you’ll visualize the results to gain deeper insights into how the algorithm dynamically adjusts risk exposure to protect against market downturns, giving you a powerful tool for managing portfolio risk.