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

Introduction to Asset-Liability Management

Good to know

Know what's good

, what to watch for

, 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-based portfolio analysis

Learners say this course provides beginners with a good introduction to portfolio construction and analysis techniques. The course is largely positively received and features highly rated lab sessions where students complete programming exercises in Python. Key features mentioned include portfolio optimization, liability-driven investing, and Monte Carlo analysis. Several students claim that no prior coding knowledge is required, but a few students with little to no financial knowledge found the material challenging.

Students report that prior coding knowledge is not required.

"A very beginner friendly course with more a lot of focus on financial concepts and how to execute them using Python"

The course offers hands-on lab sessions that help students practice coding concepts as they learn.

"Excellent blend of concepts and hands-on tutorials."

"Excellent introductory course for investment management !!"

The course emphasizes Python programming and the application of Python techniques in portfolio management.

"Great course with excellent lab sessions, very good for practitioners as a useful toolkit is developed."

"Excellent course that explains the relevant theory while giving hands on experience of implementing these strategies"

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

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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

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

Collect Resources on Investment Science and Machine Learning

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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.

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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

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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

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

Four other activities

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Practice Quantitative Analysis with Python

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

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Find practice problems
Solve the problems in Python
Review your solutions

Develop a Model for Asset Allocation

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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.

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

Tutor Students in Investment Management Concepts

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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

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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

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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

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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:

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

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

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

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

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.

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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

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 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.

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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.

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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

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

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

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