Monte Carlo VaR
Both the return values and the Monte-Carlo paths can be used for analysis of everything ranging from option pricing models and hedging to portfolio optimization and trading strategies.
Aggregate the returns data at each iteration, and use the resulting values to forecast parametric VaR(99).
The parameters mu
, vol
, T
, and S0
are available from the previous exercise.
Diese Übung ist Teil des Kurses
Introduction to Portfolio Risk Management in Python
Anleitung zur Übung
- Use the
.append()
method to append therand_rets
tosim_returns
list in each iteration. - Calculate the parametric VaR(99) using the
np.percentile()
function onsim_returns
.
Interaktive Übung
Versuche dich an dieser Übung, indem du diesen Beispielcode vervollständigst.
# Aggregate the returns
sim_returns = []
# Loop through 100 simulations
for i in range(100):
# Generate the Random Walk
rand_rets = np.random.normal(mu, vol, T)
# Save the results
sim_returns.____
# Calculate the VaR(99)
var_99 = ____
print("Parametric VaR(99): ", round(100*var_99, 2),"%")