🎓 Tutor With Me: 1-On-1 Video Call Sessions Available ► Join me for personalized finance tutoring tailored to your goals: ryanoconnellfinance.com/finance-tutoring/ 🔑 Join this channel to get access to perks & support my work: ruclips.net/channel/UCAkyj2N9kd0HtKhCrejsYWQjoin
I'm currently studying for an investment and advisory certificate and this vid helped me so much! I hope you talk about more theories of investments because I loved you style of explaining 🙏🏻
Thank you very much Ryan. I study finance at LSE and I find your videos extremely helpful! I hope your channel achieves much more success in the future!
Congrats on getting into a great program and thank you for letting me know the impact my videos have had for you! I'm confident the channel's success will keep growing, much appreciated!
Nice video! I like the last minute of the video where you explained the implications of the CAL, and how you can use leverage to achieve an expected return higher than the tangency point. I feel like the relationship between portfolio weights/expected returns along the CAL wasn’t explained well in school
Thank you Brian, I appreciate that! It is definitely possible that your class stopped after drawing the CAL line and didn't expect people to learn beyond that. Also, post more ping pong videos please!
amazing content. if one wants to optimize their portfolio by sortino ratio, is it expected to have a lower risk than by sharpe? Also, optimize by treynor ratio would be a great strategy when one assumes that the market wont have a good performance?
Thank you! My intuition says that, yes, optimizing by the Sortino ratio can potentially result in a lower risk portfolio compared to the Sharpe ratio, as it focuses specifically on downside risk, which should enhance the effect the denominator has on the overall calculation. Optimizing by the Treynor ratio could be beneficial when you expect the market to underperform, as it emphasizes systematic risk relative to the market. Great insights!
I have spent alot of time thinking about my cash position in my portfolio relative to the efficient frontier. I was hoping I could use some of this methodology to help me find the optimal cash position in my portfolio, or would something like VaR be better?
In my experience, VaR is more frequently used by financial institutions, often because they have some regulations that require they use VaR to manage risk (for example, in banking the regulators do not want banks losing depositors money and becomming insolvent so they have VaR requirements). It is not very common for individuls to manage their own portfolios based on VaR but you could. As for your own portfolio, I have an in depth Excel video on performing a portfolio optimization analysis that you may be interested in: ruclips.net/video/XQS17YrZvEs/видео.html
Not a problem and also not too much of a noob question! The main way people estimate the risk (standard deviation) is by calculating the standard deviation of a stocks daily returns and then annualizing those returns. I show how you can do this with any stock in Excel in this 5 minute video here: ruclips.net/video/56CgFMoaQVo/видео.html
In this example, risk is the standard deviation. For the CFA 1, risk can be either beta (security market line) or standard deviation (capital allocation line)
![[#2024MAMA] G-DRAGON - 무제(Untitled, 2014)+POWER+HOME SWEET HOME+뱅뱅뱅+FANTASTIC BABY | Mnet 241123 방송](http://i.ytimg.com/vi/Ox29z5Nf1Uk/mqdefault.jpg)
🎓 Tutor With Me: 1-On-1 Video Call Sessions Available
► Join me for personalized finance tutoring tailored to your goals: ryanoconnellfinance.com/finance-tutoring/
🔑 Join this channel to get access to perks & support my work: ruclips.net/channel/UCAkyj2N9kd0HtKhCrejsYWQjoin
I'm currently studying for an investment and advisory certificate and this vid helped me so much! I hope you talk about more theories of investments because I loved you style of explaining 🙏🏻
Thank you and I will continue! No plans to stop. I have a larger video on a general into to portfolio management planed in the future
have to admit that you explain better, than ex JPM professors with PHDs
Thank you Daniel! This is one of the best complements I have received
Fantastic explanation, I'm trying to implement this in Python and your channel has been a massive help. Thank you!
That is very well explained. Thank you very much.
It is my pleasure! Thank you for taking the time to leave me this feedback
You made this concept pretty clear and easy to understand. Thank you!
Great explanation. Thanks a lot sir
You're very welcome!
I have learned a lot from your content in my CFA journey. Keep it up!!
Thank you for letting me know, I appreciate this feedback! And I will absolutely keep it up 💪
Thank you!!. I’m taking an investment planning now, and your video help me understand the concepts easier
Thank you very much Ryan.
I study finance at LSE and I find your videos extremely helpful! I hope your channel achieves much more success in the future!
Congrats on getting into a great program and thank you for letting me know the impact my videos have had for you! I'm confident the channel's success will keep growing, much appreciated!
Nice video! I like the last minute of the video where you explained the implications of the CAL, and how you can use leverage to achieve an expected return higher than the tangency point. I feel like the relationship between portfolio weights/expected returns along the CAL wasn’t explained well in school
Thank you Brian, I appreciate that! It is definitely possible that your class stopped after drawing the CAL line and didn't expect people to learn beyond that. Also, post more ping pong videos please!
@@RyanOConnellCFA you sound like the rest of my followers lol
@@PandaPong You gotta give the people what they want! 😂
Excellent content, thank you
My pleasure!
Thank you! Lot better explanation than from books, etc! Really good job Ryan, keep doing! Lukas from Poland:)!
Thank you Lukas! Awesome to see Poland represented here in the comments. RUclips really connects everyone!
We want more videos explaining portfolio management subject
Great! I've got a whole portfolio management playlist with 35+ videos here: ruclips.net/p/PLPe-_ytPHqygIlNok8a3pm1xwHXwVsYmv&si=3xMthuYQxQ2lLnoe
Super bro proud of you
Thank you Pranav!
good jobs Ryan 👍👍
Thank you! 🙏
Again amazing content
Thank you for that, I appreciate it!
@@RyanOConnellCFA Portfolio theory is deep like ocean, what books you can recommend about it ?
at 4:00 - can you explain how you used correlation when calculating the new expected risk based on your 75/25 portfolio weight? Thanks!
thanks
Dear Ryan, can you advise which is better for preparing for the exam - the cfa books or the schweser ones?
amazing content. if one wants to optimize their portfolio by sortino ratio, is it expected to have a lower risk than by sharpe? Also, optimize by treynor ratio would be a great strategy when one assumes that the market wont have a good performance?
Thank you! My intuition says that, yes, optimizing by the Sortino ratio can potentially result in a lower risk portfolio compared to the Sharpe ratio, as it focuses specifically on downside risk, which should enhance the effect the denominator has on the overall calculation. Optimizing by the Treynor ratio could be beneficial when you expect the market to underperform, as it emphasizes systematic risk relative to the market. Great insights!
I have spent alot of time thinking about my cash position in my portfolio relative to the efficient frontier. I was hoping I could use some of this methodology to help me find the optimal cash position in my portfolio, or would something like VaR be better?
In my experience, VaR is more frequently used by financial institutions, often because they have some regulations that require they use VaR to manage risk (for example, in banking the regulators do not want banks losing depositors money and becomming insolvent so they have VaR requirements). It is not very common for individuls to manage their own portfolios based on VaR but you could.
As for your own portfolio, I have an in depth Excel video on performing a portfolio optimization analysis that you may be interested in: ruclips.net/video/XQS17YrZvEs/видео.html
Sorry for the noob question, but how do we get the Risk percentage to begin with? Is that the beta?
Not a problem and also not too much of a noob question! The main way people estimate the risk (standard deviation) is by calculating the standard deviation of a stocks daily returns and then annualizing those returns. I show how you can do this with any stock in Excel in this 5 minute video here: ruclips.net/video/56CgFMoaQVo/видео.html
In this example, risk is the standard deviation. For the CFA 1, risk can be either beta (security market line) or standard deviation (capital allocation line)
Jp is correct! University courses will often also teach the security market line (SML) based on Beta as the measure of risk
Thank you.
You're welcome!
Wow
Good evening Mr Connell, how can i link up with you on LinkedIn?
Hey Monday, you can connect me on LinkedIn here!
www.linkedin.com/in/ryan-oconnell/