Heatmaps, MonteCarlo Method and much more
Shashi Prakash
Principal Consultant | PhD Scholar | IIM Indore | EMLV Paris | Adjunct Faculty for Product Management
The analysis shows that if you invested a X amount of money in Nifty Bank stocks there is a 99 percent chance that you will not lose more than Y percent of the money. The highest risk is to invest in Yes Bank which can tune your losses to the percentage of 15.48%. The safest stock in this category is HDFC which can bring your losses to a maximum of 2.73 percent. The confidence interval may be altered to get different values though.
The correlation also suggested interesting insights. The below table mentions the numbers while the other image shows the heat map of the same.
The heatmap shows that Kotak and PNB are negatively correlated as per the fed data set.
So the investment in these stocks should be done accordingly. The exact data set and the output may be fetched from the github repository. The link has been mentioned at the bottom.
GitHub Repository:
Relevant files:
- Heatmaps, clustermaps and moving averages
- Monte Carlo Simulation for Indian Banks