Introduction to Portfolio Construction and Analysis with Python from Coursera

The practice of investment management has been transformed in recent years by computational methods. This course provides an introduction to the underlying science, with the aim of giving you a thorough understanding of that scientific basis. However, instead of merely explaining the science, we help you build on that foundation in a practical manner, with an emphasis on the hands-on implementation of those ideas in the Python programming language.

This course is the first in a four course specialization in Data Science and Machine Learning in Asset Management but can be taken independently. In this course, we cover the basics of Investment Science, and we'll build practical implementations of each of the concepts along the way. We'll start with the very basics of risk and return and quickly progress to cover a range of topics including several Nobel Prize winning concepts. We'll cover some of the most popular practical techniques in modern, state of the art investment management and portfolio construction.

As we cover the theory and math in lecture videos, we'll also implement the concepts in Python, and you'll be able to code along with us so that you have a deep and practical understanding of how those methods work. By the time you are done, not only will you have a foundational understanding of modern computational methods in investment management, you'll have practical mastery in the implementation of those methods.

What's inside

Syllabus

Analysing returns

An Introduction to Portfolio Optimization

Beyond Diversification

Traffic lights

Read about what's good

what should give you pause

and possible dealbreakers

Explores asset-liability management, which is essential in financial planning

Teaches portfolio optimization techniques, which is key in managing investment portfolios

Develops practical skills in implementing computational methods in investment management

Covers Nobel Prize winning concepts in investment science

Provides a strong foundation in the science and mathematics of investment management

Reviews summary

Python for portfolio construction

According to learners, this course provides a solid introduction to applying Python to investment management and portfolio analysis. Students frequently highlight the effective integration of finance theory and practical coding as a major positive, particularly appreciating the hands-on labs and assignments that reinforce concepts like risk and return analysis and portfolio construction. While the curriculum covers foundational and even Nobel Prize-winning concepts, some reviewers noted that the course moves at a fast pace and may be challenging for those without prior exposure to either Python programming or investment concepts. Overall, it is widely regarded as a valuable starting point, especially for individuals planning to pursue the full Data Science and Machine Learning in Asset Management specialization.

Prepares well for the next courses.

"This course is an essential building block for the rest of the specialization and provides necessary tools."

"Feel much more prepared for the next courses after taking this one, it built a strong base."

"Highly recommend taking this if you plan to complete the full Data Science specialization."

Strong coverage of core investment science.

"The explanations of risk, return, and diversification were very clear and easy to follow."

"I finally understood the basics of Modern Portfolio Theory thanks to the lectures provided here."

"Provides a solid theoretical basis before diving into coding exercises."

"Covers the essential building blocks of investment management science."

Excellent integration of theory and coding.

"I really appreciated how the course immediately had us implement the concepts we learned using Python."

"The hands-on coding labs were excellent for understanding the practical side of portfolio analysis."

"It wasn't just theory; we actually built things, which made it stick."

"The assignments helped solidify the concepts taught in the lectures through coding."

Moves quickly through some theoretical parts.

"The course moves at a fast pace, especially through the theoretical sections before coding begins."

"Needed to pause and rewatch lectures frequently to keep up with the speed of the instruction."

"If you are new to both subjects, the speed might be overwhelming at times."

"Could benefit from slightly more time spent on explaining the underlying math."

Beneficial with some Python or finance knowledge.

"While it says 'Introduction,' I struggled a bit without a stronger Python background coming in."

"Some finance concepts were covered quickly; having a basic understanding beforehand definitely helps."

"This course is probably best if you have at least intermediate skills in either area, otherwise, be prepared to work hard."

"The pace assumes some familiarity with basic programming and finance terms."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Introduction to Portfolio Construction and Analysis with Python with these activities:

Review Linear Algebra

Show steps

Strengthen your foundation for the course by refreshing your knowledge of linear algebra. This will ensure that you have a solid understanding of the mathematical concepts used in investment management.

Browse courses on Linear Algebra

Show steps

Review your notes or textbooks
Solve practice problems
Watch videos or tutorials

Collect Resources on Investment Science and Machine Learning

Show steps

Enhance your learning by gathering and organizing resources on investment science and machine learning. This compilation will serve as a valuable reference throughout the course and beyond.

Show steps

Search for articles, books, and websites
Organize the resources into a coherent structure
Share your compilation with others

Follow Tutorials on Python for Investment Management

Show steps

Enhance your Python skills by following tutorials specific to investment management. This will help you apply the concepts from the course to practical scenarios.

Browse courses on Python Programming

Show steps

Identify relevant tutorials
Follow the tutorials step-by-step
Implement the concepts in your own Python projects

Four other activities

Expand to see all activities and additional details

Show all seven activities

Practice Quantitative Analysis with Python

Show steps

Reinforce your understanding of quantitative analysis by practicing with Python. This will improve your problem-solving abilities and deepen your grasp of the concepts.

Browse courses on Quantitative Analysis

Show steps

Find practice problems
Solve the problems in Python
Review your solutions

Develop a Model for Asset Allocation

Show steps

Apply your knowledge by creating a model for asset allocation. This project will allow you to synthesize the concepts from the course and demonstrate your ability to solve real-world problems.

Browse courses on Asset Allocation

Show steps

Gather data and research investment strategies
Design and implement your model
Test and evaluate your model

Tutor Students in Investment Management Concepts

Show steps

Consolidate your understanding of investment management concepts by tutoring others. This will reinforce your knowledge and provide you with valuable teaching experience.

Browse courses on Investment Management

Show steps

Contact your teacher or classmates to offer tutoring
Prepare your teaching materials
Meet with students and guide them

Contribute to Open-Source Investment Management Projects

Show steps

Deepen your understanding of the practical aspects of investment management by contributing to open-source projects. This will expose you to real-world applications and enhance your coding skills.

Browse courses on Investment Management

Show steps

Identify relevant open-source projects
Find issues or features to work on
Submit your contributions to the project

Career center

Learners who complete Introduction to Portfolio Construction and Analysis with Python will develop knowledge and skills that may be useful to these careers:

Financial Analyst

An Introduction to Portfolio Construction and Analysis with Python is a course that may be useful for individuals who are seeking to build a career as a Financial Analyst. The course can help individuals develop a foundation in modern computational methods in investment management, and practical mastery in the implementation of those methods. This can be particularly beneficial for Financial Analysts, who are responsible for analyzing and evaluating financial data in order to make investment decisions.

See salaries and explore the career path for Financial Analyst

Portfolio Manager

An Introduction to Portfolio Construction and Analysis with Python is a course that may be useful for individuals who are seeking to build a career as a Portfolio Manager. The course can help individuals develop a foundation in modern computational methods in investment management, and practical mastery in the implementation of those methods. This can be particularly beneficial for Portfolio Managers, who are responsible for managing investment portfolios and making investment decisions.

See salaries and explore the career path for Portfolio Manager

Investment Manager

An Introduction to Portfolio Construction and Analysis with Python is a course that may be useful for individuals who are seeking to build a career as an Investment Manager. The course can help individuals develop a foundation in modern computational methods in investment management, and practical mastery in the implementation of those methods. This can be particularly beneficial for Investment Managers, who are responsible for managing investment funds and making investment decisions.

See salaries and explore the career path for Investment Manager

Quantitative Analyst

An Introduction to Portfolio Construction and Analysis with Python is a course that may be useful for individuals who are seeking to build a career as a Quantitative Analyst. The course can help individuals develop a foundation in modern computational methods in investment management, and practical mastery in the implementation of those methods. This can be particularly beneficial for Quantitative Analysts, who are responsible for developing and implementing quantitative models for investment decisions.

See salaries and explore the career path for Quantitative Analyst

Risk Manager

An Introduction to Portfolio Construction and Analysis with Python is a course that may be useful for individuals who are seeking to build a career as a Risk Manager. The course can help individuals develop a foundation in modern computational methods in investment management, and practical mastery in the implementation of those methods. This can be particularly beneficial for Risk Managers, who are responsible for assessing and managing risks for investment portfolios.

See salaries and explore the career path for Risk Manager

Financial Advisor

An Introduction to Portfolio Construction and Analysis with Python is a course that may be useful for individuals who are seeking to build a career as a Financial Advisor. The course can help individuals develop a foundation in modern computational methods in investment management, and practical mastery in the implementation of those methods. This can be particularly beneficial for Financial Advisors, who are responsible for providing financial advice to clients.

See salaries and explore the career path for Financial Advisor

Data Scientist

An Introduction to Portfolio Construction and Analysis with Python is a course that may be useful for individuals who are seeking to build a career as a Data Scientist. The course can help individuals develop a foundation in modern computational methods in investment management, and practical mastery in the implementation of those methods. This can be particularly beneficial for Data Scientists, who are responsible for collecting, analyzing, and interpreting data in order to make informed decisions.

See salaries and explore the career path for Data Scientist

Machine Learning Engineer

An Introduction to Portfolio Construction and Analysis with Python is a course that may be useful for individuals who are seeking to build a career as a Machine Learning Engineer. The course can help individuals develop a foundation in modern computational methods in investment management, and practical mastery in the implementation of those methods. This can be particularly beneficial for Machine Learning Engineers, who are responsible for developing and implementing machine learning models for investment decisions.

See salaries and explore the career path for Machine Learning Engineer

Software Engineer

An Introduction to Portfolio Construction and Analysis with Python is a course that may be useful for individuals who are seeking to build a career as a Software Engineer. The course can help individuals develop a foundation in modern computational methods in investment management, and practical mastery in the implementation of those methods. This can be particularly beneficial for Software Engineers, who are responsible for developing and implementing software applications for investment management.

See salaries and explore the career path for Software Engineer

Actuary

An Introduction to Portfolio Construction and Analysis with Python is a course that may be useful for individuals who are seeking to build a career as an Actuary. The course can help individuals develop a foundation in modern computational methods in investment management, and practical mastery in the implementation of those methods. This can be particularly beneficial for Actuaries, who are responsible for assessing and managing risks for insurance companies.

See salaries and explore the career path for Actuary

Financial Planner

An Introduction to Portfolio Construction and Analysis with Python is a course that may be useful for individuals who are seeking to build a career as a Financial Planner. The course can help individuals develop a foundation in modern computational methods in investment management, and practical mastery in the implementation of those methods. This can be particularly beneficial for Financial Planners, who are responsible for providing financial advice to clients and helping them plan for the future.

See salaries and explore the career path for Financial Planner

Investment Banker

An Introduction to Portfolio Construction and Analysis with Python is a course that may be useful for individuals who are seeking to build a career as an Investment Banker. The course can help individuals develop a foundation in modern computational methods in investment management, and practical mastery in the implementation of those methods. This can be particularly beneficial for Investment Bankers, who are responsible for advising companies on investment decisions and raising capital.

See salaries and explore the career path for Investment Banker

Private Equity Investor

An Introduction to Portfolio Construction and Analysis with Python is a course that may be useful for individuals who are seeking to build a career as a Private Equity Investor. The course can help individuals develop a foundation in modern computational methods in investment management, and practical mastery in the implementation of those methods. This can be particularly beneficial for Private Equity Investors, who are responsible for investing in private companies and helping them grow.

See salaries and explore the career path for Private Equity Investor

Venture Capitalist

An Introduction to Portfolio Construction and Analysis with Python is a course that may be useful for individuals who are seeking to build a career as a Venture Capitalist. The course can help individuals develop a foundation in modern computational methods in investment management, and practical mastery in the implementation of those methods. This can be particularly beneficial for Venture Capitalists, who are responsible for investing in early-stage companies and helping them grow.

See salaries and explore the career path for Venture Capitalist

Hedge Fund Manager

An Introduction to Portfolio Construction and Analysis with Python is a course that may be useful for individuals who are seeking to build a career as a Hedge Fund Manager. The course can help individuals develop a foundation in modern computational methods in investment management, and practical mastery in the implementation of those methods. This can be particularly beneficial for Hedge Fund Managers, who are responsible for managing hedge funds and making investment decisions.

See salaries and explore the career path for Hedge Fund Manager