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Alpha Research and Factor Modeling

Udacity - AI for Trading Nanodegree Program

Project Overview

  • Build a statistical risk model using PCA.
  • Use this model to build a portfolio along with 5 alpha factors.
  • Evaluate the factors using factor-weighted returns, quantile analysis, sharpe ratio, and turnover analysis.
  • Optimize the portfolio using the risk model and factors using multiple optimization formulations.

For the dataset, the end of day from Quotemedia and sector data from Sharadar are used.