Stock Market Analysis

Problem Statement

Investors often need to analyze the historical performance, volatility, and returns of their portfolio to make informed financial decisions. This project provides a data-driven overview of six major tech stocks over the past year.

Project Goal

To analyze the performance, volatility, and risk-adjusted returns of key tech stocks in a portfolio using historical market data, moving averages, and financial indicators like Sharpe Ratio.

Key Features

• 📥 Data Collection:

  • Pulled 1 year of stock data using the yfinance API for:

    • Amazon (AMZN), Meta (META), Microsoft (MSFT), Tesla (TSLA), Apple (AAPL), Alphabet (GOOGL)

• 📊 Price Trend Analysis:

  • Line plot showing daily closing prices for each stock.

  • Identified key price movements and trends across time.

• 🔁 Technical Indicators:

  • Calculated 50-day and 200-day moving averages per stock.

  • Visualized moving averages overlaid on close prices.

• 📉 Volatility & Returns:

  • Computed daily returns and plotted distribution.

  • Created a correlation matrix to analyze interdependencies between stocks.

• ⚖️ Risk-Adjusted Metrics:

  • Calculated:

    • Expected Annual Return

    • Annualized Volatility

    • Sharpe Ratio using a 4.5% risk-free rate

  • Compiled into a summary table for comparison.

Outcome

• Delivered a comprehensive financial dashboard for evaluating a multi-stock portfolio.

• Provided actionable insights on risk vs reward for each asset.

• Built foundational logic for future extension into a real-time portfolio tracker or advisor.