For optimal investment strategy, Python can be used to maximize the returns, and reduce the risk and chances of exposure. We used Python for the following problem statement: Orion Technologies is an Indian multinational conglomerate. The company provides information technology and business process services. We have been appointed as their Treasurer and have to formulate an investment strategy for the Treasury. As a first task, we have to perform portfolio allocation through a sound investment strategy to deploy the surplus cash of INR 2,000 crore.
Python is one of the best tools for application of optimization theory. Variables, such as, return rates and investment products were provided to the Python program. Random initial weights were provided, and program gave the most optimized weight distribution as output. We used the Modern Portfolio theory with the help of library PyPortfolioOpt(). The key components of our model (used in optimization) were: Weight matrix Covariance matrix , Volatility or Standard deviation (risk), Sharpe ratio, Efficient frontier theory and Annual return.
The POWERBI Dashboard and Excel sheet with the allocation are uploaded in the repository. Project Video Link: https://www.youtube.com/watch?v=uvx3rxxXwQo&t=1s