Random thoughts on coding and technology

Introduction Welcome to my latest project—an exploration of portfolio optimization using both Monte Carlo simulations and Modern Portfolio Theory . I’ve just open-sourced the code on GitHub . In this blog post, I’ll walk through what the project does, why it’s interesting, and how you can try it yourself. What is Portfolio Optimization? Portfolio optimization is all about finding the ideal blend of assets (stocks, funds, or other instruments) that maximizes returns while minimizing risk . One classic method to visualize this is the Efficient Frontier , a concept introduced by Nobel laureate Harry Markowitz. The Efficient Frontier is the curve of “optimal” portfolios offering the highest return per unit of risk. Risk We often measure risk by volatility (standard deviation) of returns. Return Typically measured by annualized mean of returns. Sharpe Ratio A measure of risk-adjusted return, calculated as the (portfolio return – risk-free rate) / (portfolio volatility). Project Overvie...