Stock Sector Investing Via Quantitative Modeling In Excel
What you'll learn
- Learn about quantitative Investing & how it is different from conventional methods of investing
- Know the pitfalls of buying and holding a pure stock portfolio
- Know the different stocks sectors and their ETFs
- Understand the concept and rationale behind sector rotation
- Learn a quantitative approach to select the right sectors for investment
- Learn how the use of a dynamic hedge can improve the overall investment performance
- Know both the strengths and weaknesses of the Sector Rotation Strategy
- Use critical Excel lookup, logic, math and statistical functions required for modelling in this course.
- Understand the intuition, math and know how to implement financial concepts such as Returns, Correlation and Risk
- Learn the concept and math behind key investment performance metrics such as Sharpe Ratio
- Learn how to model a buy and hold portfolio
- Learn what is rebalancing and how to model a portfolio with periodic rebalancing
- Learn how to implement a sector scoring and ranking system
- Learn how to incorporate a dynamic hedge into the sector rotation strategy
- Know what are the transaction costs involved and how to incorporate them into the model
- Understand the concept of leverage and how we can use it to boost our returns
- Learn how to incorporate leverage and borrowing costs into the model
- Know how to operate the Sector Rotation Model
- The strategy taught in this course is applied to the US market
- A keen learning attitude with an open mind
- A basic knowledge in math and statistics is preferable, but not compulsory
- A basic knowledge in Excel is preferable, but not compulsory
WHAT YOU WILL GET IN THIS COURSE
Fully completed model file that you can use for live investing or improve on.
Over 8 hours of lectures developed by professionals with more than 30 years of joint experience in the asset management, hedge fund, and banking industry.
Practice sheets on financial mathematics and excel functions with solutions.
Guided step-by-step model building process complete with templates.
Free Excel-based resources (from the web) to download price data from yahoo finance in bulk.
VBA scripts to automate the data updating process.
Unlimited lifetime access anywhere, anytime. Learn at your convenience.
Full 30-day money-back guarantee. No questions asked.
Prompt online Q&A support where you can pose your questions to us.
THE COMMON CHALLENGES
Do you think professional methods of investing are beyond your reach because it involves the state of the art infrastructure, rocket science, and a huge amount of money?
Have you tried replicating someone else's trading style and method only to end up with drastically different or inconsistent results?
Do you find it difficult to implement investment strategies that you learned because (a) you have no confidence about it, (b) you still don't know how to execute it, and/or (c) you have no time?
THIS COURSE WILL CHANGE YOUR PERCEPTION OF THE APPROACH TO INVESTING.
We will teach you in-depth a stock investing strategy known as Sector Rotation, from concept to implementation, whose principles are used among hedge fund professionals. While stock sectors generally tread in the same direction as the broader stock market, their individual performance can differ. We will see in this course how to select the right sectors using ETFs to improve investment performance. Then we will learn how to incorporate a natural hedge into the system to make it more resilient against stock market shocks and downturns. The result is a robust portfolio that is much lower in risk, yet yielding comparable or even higher returns than the broad stock market.
Sector Rotation is a powerful quantitative strategy that is grounded in well-established theory and common sense. There are no chart reading, no thick annual reports, no constant monitoring of market news, and no forecasting.
All investment decisions are driven by the model we will build in this course. The completed model requires less than 5 minutes of your time to update. A good understanding of the strategy through hands-on learning will keep your discipline in check and prevent you from falling prey to emotions during times of market stress. The result is consistency.
We will build the model up in Excel using inbuilt Excel functions. No programming experience is required. Neither do we need expensive tools or data subscriptions. We will use only free resources.
WHAT YOU WILL LEARN
Why investing purely in a portfolio of stocks is riskier than it looks.
What are the different stock sectors?
What is the concept and rationale behind sector rotation?
How do we pick the correct stock sectors?
What can we do to hedge against stock market downturns?
How do we size our allocation to the sectors and hedge?
How to use critical Excel functions e.g. data lookup, logic operators, math and statistical functions, etc.
What is the intuition and math behind key financial concepts, e.g. returns, volatility, correlation, marginal risk contribution, etc, and how to implement them on Excel?
Where and how to get price data.
How to model a buy and hold portfolio.
What is rebalancing and how to model a portfolio with periodic rebalancing.
How to build a scoring system for the sectors
How to incorporate a dynamic hedge into the model
How to incorporate transaction costs, borrowing costs, and leverage into the model.
How to calculate key performance metrics and create a performance analytics worksheet for tracking model performance.
How to create a dashboard to extract and display key information for making investment decisions.
An investment in the right education is one of the best investments one can make. The earlier you start, the better you will be in the future. So take action now and ENROLL IN THIS COURSE!
Who this course is for:
- Anyone who is keen to learn a solid investment approach used by hedge fund professionals founded on math and common sense.
- Anyone who is interested in generating stable returns with lower risk over the long term.
- Anyone who is serious about taking charge of their investment.
- This is NOT for people expecting an active trading course or something that will make you a millionaire overnight.
AllQuant is a private fund management company founded by investment professionals, Eng Guan (E.G.) Lim and Patrick Ling. They have a total of more than 30 years of experience in the financial markets working their way through asset management firms, investment banks, proprietary trading, and hedge funds. In their last role, they were both portfolio managers in a quantitative multi-strategy hedge fund.
As part of their efforts to demystify the quantitative approach to investing, AllQuant is dedicated to providing top-notch education in financial markets and investing, aiming to break down the barriers between professional and retail investing. They look to deliver value-adding courses developed through real experiences that are not just pedagogical but practical as well. The ultimate objective is to empower individuals to take charge of their own investments.
The founders believe that education is one of the best investments and the solution to a better and fairer world.