Finance with Python! Portfolio Diversification and Risk

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Tutorial reviewing how diversification impacts risk within a financial portfolio. Learn how to download financial data, create a price weighted portfolio, calculate correlations between asset class returns and analyze the volatility of asset classes.

**Disclaimer - The contents of this video are for informational and educational purposes only. They should not be considered investment, financial, legal or tax advice.**

The notebook can be found in the "Finance with Python" folder within the below repo.

CONNECT:

|-Video Chapters-|
0:00 - Intro
0:22 - Definition of diversification
1:42 - Creating a diversified price weighted portfolio
9:38 - Calculating the daily holding period return of an asset
10:59 - Calculating the historical volatility (standard deviation) of an asset
13:12 - Calculating historical volatility within Python
14:42 - Comparing volatility as we add assets into a portfolio
16:12 - Financial asset classes
20:00 - Correlation between different asset classes
22:16 - Asset class weightings within the portfolio
23:05 - Volatility across asset classes
26:32 - Calculating the annualized volatility for asset classes
28:45 - Falling risk as different asset classes are added into a portfolio
31:00 - References and additional learning