Apply it to your data 12

Which of the assets the largest contributor to the portfolio volatility?

# Load packages

# Core
library(tidyverse)
library(tidyquant)

Goal

Examine how each asset contributes to portfolio standard deviation. This is to ensure that our risk is not concentrated in any one asset.

1 Import stock prices

# Choose stocks

symbols <- c("AAPL", "NVDA", "ADBE", "AVGO", "AMD")

# Using tq_get() ----
prices <- tq_get(x = symbols,
                 get = "stock.prices",
                 from = "2012-12-31",
                 to = "2023-12-13")

2 Convert prices to returns (monthly)

asset_returns_tbl <- prices %>%

    # Calculate monthly returns
    group_by(symbol) %>%
    tq_transmute(select = adjusted,
                 mutate_fun = periodReturn,
                 period = "monthly",
                 type = "log") %>%
    slice(-1) %>%
    ungroup() %>%

    # remane
    set_names(c("asset", "date", "returns"))

# period_returns = c("yearly", "quarterly", "monthly", "weekly")