#Load Packages
library(tidyverse)
## ── Attaching core tidyverse packages ──────────────────────── tidyverse 2.0.0 ──
## ✔ dplyr     1.2.1     ✔ readr     2.2.0
## ✔ forcats   1.0.1     ✔ stringr   1.6.0
## ✔ ggplot2   4.0.3     ✔ tibble    3.3.1
## ✔ lubridate 1.9.5     ✔ tidyr     1.3.2
## ✔ purrr     1.2.2     
## ── Conflicts ────────────────────────────────────────── tidyverse_conflicts() ──
## ✖ dplyr::filter() masks stats::filter()
## ✖ dplyr::lag()    masks stats::lag()
## ℹ Use the conflicted package (<http://conflicted.r-lib.org/>) to force all conflicts to become errors
library(tidyquant)
## Registered S3 method overwritten by 'quantmod':
##   method            from
##   as.zoo.data.frame zoo 
## ── Attaching core tidyquant packages ─────────────────────── tidyquant 1.0.12 ──
## ✔ PerformanceAnalytics 2.1.0      ✔ TTR                  0.24.4
## ✔ quantmod             0.4.29     ✔ xts                  0.14.2── Conflicts ────────────────────────────────────────── tidyquant_conflicts() ──
## ✖ zoo::as.Date()                 masks base::as.Date()
## ✖ zoo::as.Date.numeric()         masks base::as.Date.numeric()
## ✖ dplyr::filter()                masks stats::filter()
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## ✖ PerformanceAnalytics::legend() masks graphics::legend()
## ✖ quantmod::summary()            masks base::summary()
## ℹ Use the conflicted package (<http://conflicted.r-lib.org/>) to force all conflicts to become errors

Get Stock Prices and Convert to Returns

Ra <- c("AAPL", "GOOG","NFLX") %>%
    tq_get(get = "stock.prices",
           from = "2022-01-01") %>%
    group_by(symbol) %>%
    tq_transmute(select   =adjusted,
                 mutate_fun = periodReturn,
                 period = "monthly",
                 col_rename = "Ra")
## Warning: There were 3 warnings in `dplyr::mutate()`.
## The first warning was:
## ℹ In argument: `nested.col = purrr::map(...)`.
## ℹ In group 1: `symbol = "AAPL"`.
## Caused by warning in `to_period()`:
## ! missing values removed from data
## ℹ Run `dplyr::last_dplyr_warnings()` to see the 2 remaining warnings.
Ra
## # A tibble: 171 × 3
## # Groups:   symbol [3]
##    symbol date            Ra
##    <chr>  <date>       <dbl>
##  1 AAPL   2022-01-31 -0.0397
##  2 AAPL   2022-02-28 -0.0541
##  3 AAPL   2022-03-31  0.0575
##  4 AAPL   2022-04-29 -0.0971
##  5 AAPL   2022-05-31 -0.0545
##  6 AAPL   2022-06-30 -0.0814
##  7 AAPL   2022-07-29  0.189 
##  8 AAPL   2022-08-31 -0.0312
##  9 AAPL   2022-09-30 -0.121 
## 10 AAPL   2022-10-31  0.110 
## # ℹ 161 more rows

Get Baseline and Convert to Returns

Rb <- "^IXIC" %>%
    tq_get(get = "stock.prices",
           from = "2022-01-01") %>%
    tq_transmute(select   = adjusted,
                 mutate_fun = periodReturn,
                 period = "monthly",
                 col_rename = "Rb")
## Warning in to_period(xx, period = on.opts[[period]], ...): missing values
## removed from data
Rb
## # A tibble: 57 × 2
##    date            Rb
##    <date>       <dbl>
##  1 2022-01-31 -0.101 
##  2 2022-02-28 -0.0343
##  3 2022-03-31  0.0341
##  4 2022-04-29 -0.133 
##  5 2022-05-31 -0.0205
##  6 2022-06-30 -0.0871
##  7 2022-07-29  0.123 
##  8 2022-08-31 -0.0464
##  9 2022-09-30 -0.105 
## 10 2022-10-31  0.0390
## # ℹ 47 more rows

Join the Two Tables

RaRb <- left_join(Ra, Rb, by = c("date" = "date"))
RaRb
## # A tibble: 171 × 4
## # Groups:   symbol [3]
##    symbol date            Ra      Rb
##    <chr>  <date>       <dbl>   <dbl>
##  1 AAPL   2022-01-31 -0.0397 -0.101 
##  2 AAPL   2022-02-28 -0.0541 -0.0343
##  3 AAPL   2022-03-31  0.0575  0.0341
##  4 AAPL   2022-04-29 -0.0971 -0.133 
##  5 AAPL   2022-05-31 -0.0545 -0.0205
##  6 AAPL   2022-06-30 -0.0814 -0.0871
##  7 AAPL   2022-07-29  0.189   0.123 
##  8 AAPL   2022-08-31 -0.0312 -0.0464
##  9 AAPL   2022-09-30 -0.121  -0.105 
## 10 AAPL   2022-10-31  0.110   0.0390
## # ℹ 161 more rows

Calculate CAPM

RaRb_capm <- RaRb %>%
    tq_performance(Ra = Ra,
                  Rb = Rb,
                   performance_fun = table.CAPM)
## Registered S3 method overwritten by 'robustbase':
##   method          from     
##   hatvalues.lmrob RobStatTM
RaRb_capm
## # A tibble: 3 × 18
## # Groups:   symbol [3]
##   symbol ActivePremium   Alpha AlphaRobust AnnualizedAlpha  Beta `Beta-`
##   <chr>          <dbl>   <dbl>       <dbl>           <dbl> <dbl>   <dbl>
## 1 AAPL          0.0255  0.0042      0.0047          0.0517 0.860    1.00
## 2 GOOG          0.0867  0.0078      0.0073          0.0981 1.06     1.14
## 3 NFLX         -0.0758 -0.0008      0.0087         -0.0095 1.24     1.92
## # ℹ 11 more variables: `Beta-Robust` <dbl>, `Beta+` <dbl>, `Beta+Robust` <dbl>,
## #   BetaRobust <dbl>, Correlation <dbl>, `Correlationp-value` <dbl>,
## #   InformationRatio <dbl>, `R-squared` <dbl>, `R-squaredRobust` <dbl>,
## #   TrackingError <dbl>, TreynorRatio <dbl>

Which Stock has a Positive Skew

RaRb_capm <- RaRb %>%
    tq_performance(Ra = Ra,
                  Rb = Rb,
                   performance_fun = SkewnessKurtosisRatio)
RaRb_capm
## # A tibble: 3 × 2
## # Groups:   symbol [3]
##   symbol SkewnessKurtosisRatio.1
##   <chr>                    <dbl>
## 1 AAPL                    0.0883
## 2 GOOG                    0.102 
## 3 NFLX                   -0.151
# AAPL and GOOG have positive skewness