Learn how to build a graphical dashboard with spreadsheets to track the performance of financial securities.

4 Hours15 Videos56 Exercises
21,385 Learners

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## Course Description

Monitoring the evolution of traded assets is key in finance. In this course, you will learn how to build a graphical dashboard with spreadsheets to track the performance of financial securities. You will focus on historical prices and dividends of the hypothetical stock ABC. You will learn how to visualize its prices, how to measure essential reward and risk indicators, and see if your investment in ABC outperformed a benchmark index. At the end of the course, you should be able to use spreadsheets to build great monitoring tools used by traders and financial analysts in their day-to-day business life!
1. 1

### Monitoring historical prices

Free

In the first chapter, you’ll be introduced to the problem: you have a time series of monthly (historical) prices for the hypothetical stock ABC from which you have to extract some meaningful information. You’ll be given some definitions (what is a stock? what are dividends?), and at the end of the chapter, you’ll be able to graphically represent the evolution of a stock price over a specific period.

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Introduction and first metrics
50 xp
What is a stock?
50 xp
Count prices and dividends
100 xp
Find minimum and maximum prices
100 xp
Find minimum and maximum dividends
100 xp
Identifying dates with unusual prices
50 xp
Find price at a given date
100 xp
Find dates with minimum and maximum prices
100 xp
Visualizing the price evolution
50 xp
Plot a line chart of historical prices
100 xp
Customize the chart
100 xp
Highlight minimum and maximum prices
100 xp
2. 2

### Monitoring historical returns

In this chapter, the core of the analysis will switch from historical prices to historical returns. You’ll learn (and compute) the main performance indicators of past returns, both in terms of reward and risk. Finally, you’ll be introduced to risk-adjusted performance measures: indicators that take into account both reward and risk.

3. 3

### Monitoring the distribution of returns

In this chapter, you'll look at the full distribution of historical returns. First, you’ll learn how to build a histogram to describe the distribution of historical returns. Second, you’ll be introduced to the Gaussian distribution, a commonly used model for stock returns. You'll visually inspect if the Gaussian model is reasonable for the ABC stock returns. Finally, you'll understand potential flaws with the Gaussian model.

4. 4

### Benchmarking performance

In this final chapter, you’ll benchmark ABC stock against a market index and verify whether ABC outperformed the benchmark or not. The comparison process will be done through several steps/metrics. First, you’ll analyze the cumulative wealth. Next, you’ll extend the comparison using different indicators such as Sharpe Ratio and Drawdown. Finally, you’ll examine the linear relation between ABC stock and the benchmark through the correlation coefficient. At the end of the chapter, you’ll be introduced to more powerful and advanced spreadsheet features that introduce interactivity in your analysis.

In the following tracks

Datasets

Stock ABC

Collaborators

David Ardia

Professor of Quantitative Methods for Finance

David is professor of quantitative methods for finance. His research lies in the areas of econometrics, quantitative finance, and risk management. In 2018, he was elected “Swiss risk manager of the year” by the Swiss Risk Association. He is a big fan of open-source initiatives and is the co-author of several R packages such as "DEoptim", "GAS", "MSGARCH", and "sentometrics". He is a member of the Sentometrics organization. When he does not code, he plays a foodie in downtown Montréal. For more details go here.
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Riccardo Mancini

Freelance Quantitative Analyst

Riccardo works as a Market Risk Manager for a financial services firm. He is passionate about coding in R, quantitative models applied to finance, and… soccer!
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