Refactor code for improved readability and consistency across notebooks

- Standardized spacing around operators and function arguments in TP7_Kmeans.ipynb and neural_network.ipynb.
- Enhanced the formatting of model building and training code in neural_network.ipynb for better clarity.
- Updated the pyproject.toml to remove a specific TensorFlow version and added linting configuration for Ruff.
- Improved comments and organization in the code to facilitate easier understanding and maintenance.
This commit is contained in:
2025-07-01 20:46:08 +02:00
parent e273cf90f7
commit f94ff07cab
34 changed files with 5713 additions and 5047 deletions

View File

@@ -1,8 +1,9 @@
{
"cells": [
{
"metadata": {},
"cell_type": "markdown",
"id": "81049114d821d00e",
"metadata": {},
"source": [
"# Project - Portfolio Management\n",
"\n",
@@ -11,52 +12,36 @@
"### Time period studied from 2017-01-01 to 2018-01-01\n",
"\n",
"### Risk-free rate: 2%"
],
"id": "81049114d821d00e"
]
},
{
"cell_type": "code",
"execution_count": 51,
"id": "initial_id",
"metadata": {
"collapsed": true,
"ExecuteTime": {
"end_time": "2024-11-25T13:43:46.298758Z",
"start_time": "2024-11-25T13:43:46.293696Z"
}
},
"collapsed": true
},
"outputs": [],
"source": [
"import yfinance as yf\n",
"import pandas as pd\n",
"import numpy as np"
],
"outputs": [],
"execution_count": 51
]
},
{
"cell_type": "code",
"execution_count": 52,
"id": "9f9fc36832c97e0",
"metadata": {
"ExecuteTime": {
"end_time": "2024-11-25T13:43:47.318911Z",
"start_time": "2024-11-25T13:43:47.198820Z"
}
},
"cell_type": "code",
"source": [
"# Data Extraction\n",
"Tickers = [\"^RUT\", \"^IXIC\", \"^GSPC\", \"XWD.TO\"]\n",
"start_input = \"2017-01-01\"\n",
"end_input = \"2018-01-01\"\n",
"S = pd.DataFrame()\n",
"for t in Tickers:\n",
" S[t] = yf.Tickers(t).history(start=start_input, end=end_input)[\"Close\"]\n",
"\n",
"S = S.interpolate(method=\"pad\")\n",
"\n",
"# Show the first five and last five values extracted\n",
"display(S.head())\n",
"display(S.tail())\n",
"print(S.shape)"
],
"id": "9f9fc36832c97e0",
"outputs": [
{
"name": "stderr",
@@ -72,15 +57,6 @@
},
{
"data": {
"text/plain": [
" ^RUT ^IXIC ^GSPC XWD.TO\n",
"Date \n",
"2017-01-03 00:00:00+00:00 1365.489990 5429.080078 2257.830078 38.499630\n",
"2017-01-04 00:00:00+00:00 1387.949951 5477.000000 2270.750000 38.553375\n",
"2017-01-05 00:00:00+00:00 1371.939941 5487.939941 2269.000000 38.481716\n",
"2017-01-06 00:00:00+00:00 1367.280029 5521.060059 2276.979980 38.517544\n",
"2017-01-09 00:00:00+00:00 1357.489990 5531.819824 2268.899902 38.383186"
],
"text/html": [
"<div>\n",
"<style scoped>\n",
@@ -152,6 +128,15 @@
" </tbody>\n",
"</table>\n",
"</div>"
],
"text/plain": [
" ^RUT ^IXIC ^GSPC XWD.TO\n",
"Date \n",
"2017-01-03 00:00:00+00:00 1365.489990 5429.080078 2257.830078 38.499630\n",
"2017-01-04 00:00:00+00:00 1387.949951 5477.000000 2270.750000 38.553375\n",
"2017-01-05 00:00:00+00:00 1371.939941 5487.939941 2269.000000 38.481716\n",
"2017-01-06 00:00:00+00:00 1367.280029 5521.060059 2276.979980 38.517544\n",
"2017-01-09 00:00:00+00:00 1357.489990 5531.819824 2268.899902 38.383186"
]
},
"metadata": {},
@@ -159,15 +144,6 @@
},
{
"data": {
"text/plain": [
" ^RUT ^IXIC ^GSPC XWD.TO\n",
"Date \n",
"2017-12-22 00:00:00+00:00 1542.930054 6959.959961 2683.340088 44.323349\n",
"2017-12-26 00:00:00+00:00 1544.229980 6936.250000 2680.500000 44.323349\n",
"2017-12-27 00:00:00+00:00 1543.939941 6939.339844 2682.620117 44.052303\n",
"2017-12-28 00:00:00+00:00 1548.930054 6950.160156 2687.540039 43.857414\n",
"2017-12-29 00:00:00+00:00 1535.510010 6903.390137 2673.610107 43.784576"
],
"text/html": [
"<div>\n",
"<style scoped>\n",
@@ -239,6 +215,15 @@
" </tbody>\n",
"</table>\n",
"</div>"
],
"text/plain": [
" ^RUT ^IXIC ^GSPC XWD.TO\n",
"Date \n",
"2017-12-22 00:00:00+00:00 1542.930054 6959.959961 2683.340088 44.323349\n",
"2017-12-26 00:00:00+00:00 1544.229980 6936.250000 2680.500000 44.323349\n",
"2017-12-27 00:00:00+00:00 1543.939941 6939.339844 2682.620117 44.052303\n",
"2017-12-28 00:00:00+00:00 1548.930054 6950.160156 2687.540039 43.857414\n",
"2017-12-29 00:00:00+00:00 1535.510010 6903.390137 2673.610107 43.784576"
]
},
"metadata": {},
@@ -252,63 +237,69 @@
]
}
],
"execution_count": 52
"source": [
"# Data Extraction\n",
"Tickers = [\"^RUT\", \"^IXIC\", \"^GSPC\", \"XWD.TO\"]\n",
"start_input = \"2017-01-01\"\n",
"end_input = \"2018-01-01\"\n",
"S = pd.DataFrame()\n",
"for t in Tickers:\n",
" S[t] = yf.Tickers(t).history(start=start_input, end=end_input)[\"Close\"]\n",
"\n",
"S = S.interpolate(method=\"pad\")\n",
"\n",
"# Show the first five and last five values extracted\n",
"display(S.head())\n",
"display(S.tail())\n",
"print(S.shape)"
]
},
{
"cell_type": "code",
"execution_count": 53,
"id": "53483cf3a925a4db",
"metadata": {
"ExecuteTime": {
"end_time": "2024-11-25T13:43:50.080380Z",
"start_time": "2024-11-25T13:43:50.073119Z"
}
},
"cell_type": "code",
"outputs": [],
"source": [
"R = S / S.shift() - 1\n",
"R = R[1:]\n",
"mean_d = R.mean()\n",
"covar_d = R.cov()\n",
"corr = R.corr()"
],
"id": "53483cf3a925a4db",
"outputs": [],
"execution_count": 53
]
},
{
"cell_type": "code",
"execution_count": 54,
"id": "c327ed5967b1f442",
"metadata": {
"ExecuteTime": {
"end_time": "2024-11-25T13:43:50.965092Z",
"start_time": "2024-11-25T13:43:50.961969Z"
}
},
"cell_type": "code",
"outputs": [],
"source": [
"mean = mean_d * 252\n",
"covar = covar_d * 252\n",
"std = np.sqrt(np.diag(covar))"
],
"id": "c327ed5967b1f442",
"outputs": [],
"execution_count": 54
]
},
{
"cell_type": "code",
"execution_count": 55,
"id": "6bc6a850bf06cc9d",
"metadata": {
"ExecuteTime": {
"end_time": "2024-11-25T13:43:51.701725Z",
"start_time": "2024-11-25T13:43:51.695020Z"
}
},
"cell_type": "code",
"source": [
"print(\"Mean:\\n\")\n",
"print(mean)\n",
"print(\"\\nCovariance:\\n\")\n",
"print(covar)\n",
"print(\"\\nStandard Deviation:\\n\")\n",
"print(std)\n",
"print(\"\\nCorrelation:\\n\")\n",
"print(corr)"
],
"id": "6bc6a850bf06cc9d",
"outputs": [
{
"name": "stdout",
@@ -344,22 +335,34 @@
]
}
],
"execution_count": 55
"source": [
"print(\"Mean:\\n\")\n",
"print(mean)\n",
"print(\"\\nCovariance:\\n\")\n",
"print(covar)\n",
"print(\"\\nStandard Deviation:\\n\")\n",
"print(std)\n",
"print(\"\\nCorrelation:\\n\")\n",
"print(corr)"
]
},
{
"metadata": {},
"cell_type": "markdown",
"source": "# Question 1",
"id": "fc4bec874f710f7c"
"id": "fc4bec874f710f7c",
"metadata": {},
"source": "# Question 1"
},
{
"cell_type": "code",
"execution_count": 56,
"id": "780c9cca6e0ed2d3",
"metadata": {
"ExecuteTime": {
"end_time": "2024-11-25T13:43:53.113423Z",
"start_time": "2024-11-25T13:43:53.109514Z"
}
},
"cell_type": "code",
"outputs": [],
"source": [
"r = 0.02\n",
"d = len(Tickers)\n",
@@ -369,32 +372,18 @@
"\n",
"a = vec1.T.dot(inv_sigma).dot(vec1)\n",
"b = mean.T.dot(inv_sigma).dot(vec1)"
],
"id": "780c9cca6e0ed2d3",
"outputs": [],
"execution_count": 56
]
},
{
"cell_type": "code",
"execution_count": 57,
"id": "81c956f147c68070",
"metadata": {
"ExecuteTime": {
"end_time": "2024-11-25T13:43:54.545400Z",
"start_time": "2024-11-25T13:43:54.541579Z"
}
},
"cell_type": "code",
"source": [
"# Tangent portfolio\n",
"pi_T = inv_sigma.dot(mean - r * vec1) / (b - r * a)\n",
"sd_T = np.sqrt(pi_T.T.dot(sigma).dot(pi_T)) # Variance\n",
"m_T = pi_T.T.dot(mean) # expected return\n",
"\n",
"print(f\"Expected return m_T: {m_T}\")\n",
"print(f\"Standard deviation sd_T: {sd_T}\")\n",
"print(f\"Allocation pi_T: {pi_T}\")\n",
"print(\n",
" f\"We can verify that the allocation is possible as the sum of the allocations for the different indices is {sum(pi_T)}, that is very close to 1\")"
],
"id": "81c956f147c68070",
"outputs": [
{
"name": "stdout",
@@ -407,32 +396,36 @@
]
}
],
"execution_count": 57
"source": [
"# Tangent portfolio\n",
"pi_T = inv_sigma.dot(mean - r * vec1) / (b - r * a)\n",
"sd_T = np.sqrt(pi_T.T.dot(sigma).dot(pi_T)) # Variance\n",
"m_T = pi_T.T.dot(mean) # expected return\n",
"\n",
"print(f\"Expected return m_T: {m_T}\")\n",
"print(f\"Standard deviation sd_T: {sd_T}\")\n",
"print(f\"Allocation pi_T: {pi_T}\")\n",
"print(\n",
" f\"We can verify that the allocation is possible as the sum of the allocations for the different indices is {sum(pi_T)}, that is very close to 1\"\n",
")"
]
},
{
"metadata": {},
"cell_type": "markdown",
"source": "# Question 2",
"id": "2e121c2dfb946f3c"
"id": "2e121c2dfb946f3c",
"metadata": {},
"source": "# Question 2"
},
{
"cell_type": "code",
"execution_count": 58,
"id": "c169808384ca1112",
"metadata": {
"ExecuteTime": {
"end_time": "2024-11-25T13:43:59.797115Z",
"start_time": "2024-11-25T13:43:59.792462Z"
}
},
"cell_type": "code",
"source": [
"for i in range(len(std)):\n",
" print(f\"The annualized volatilities of the index {Tickers[i]} is {std[i]}\")\n",
" print(f\"The annualized expected returns of the index {Tickers[i]} is {mean[Tickers[i]]}\")\n",
" print(\"\")\n",
"\n",
"print(f\"The annualized volatility of the Tangent Portfolio is {sd_T * np.sqrt(252)}\")\n",
"print(f\"The annualized expected return of the Tangent Portfolio is {m_T * 252}\")"
],
"id": "c169808384ca1112",
"outputs": [
{
"name": "stdout",
@@ -455,29 +448,34 @@
]
}
],
"execution_count": 58
"source": [
"for i in range(len(std)):\n",
" print(f\"The annualized volatilities of the index {Tickers[i]} is {std[i]}\")\n",
" print(\n",
" f\"The annualized expected returns of the index {Tickers[i]} is {mean[Tickers[i]]}\"\n",
" )\n",
" print(\"\")\n",
"\n",
"print(f\"The annualized volatility of the Tangent Portfolio is {sd_T * np.sqrt(252)}\")\n",
"print(f\"The annualized expected return of the Tangent Portfolio is {m_T * 252}\")"
]
},
{
"metadata": {},
"cell_type": "markdown",
"source": "# Question 3",
"id": "af8d29ecdbf2ae1"
"id": "af8d29ecdbf2ae1",
"metadata": {},
"source": "# Question 3"
},
{
"cell_type": "code",
"execution_count": 59,
"id": "2e0215ab7904906a",
"metadata": {
"ExecuteTime": {
"end_time": "2024-11-25T13:44:01.393591Z",
"start_time": "2024-11-25T13:44:01.388830Z"
}
},
"cell_type": "code",
"source": [
"print(\"sharpe ratio of the Tangent portfolio :\", (m_T - r) / sd_T)\n",
"\n",
"for i in range(4):\n",
" print(f\"the sharpe ratio of the index {Tickers[i]} is {(mean[Tickers[i]] - r) / std[i]}\")"
],
"id": "2e0215ab7904906a",
"outputs": [
{
"name": "stdout",
@@ -491,7 +489,14 @@
]
}
],
"execution_count": 59
"source": [
"print(\"sharpe ratio of the Tangent portfolio :\", (m_T - r) / sd_T)\n",
"\n",
"for i in range(4):\n",
" print(\n",
" f\"the sharpe ratio of the index {Tickers[i]} is {(mean[Tickers[i]] - r) / std[i]}\"\n",
" )"
]
}
],
"metadata": {

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