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PortfolioAnalytics question re: showing results

4 messages · matt at considine.net, Ilya Kipnis, Brian G. Peterson

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Hi,
I have a sense I have overlooked something pretty basic here, but I'll 
risk asking an obvious question.  I am trying to use PortfolioAnalytics 
as a complement to information provided by an investment consultant.  
They are presenting their efficient frontier results with annualized 
expected return data.  I'm feeding PortfolioAnalytics monthly historical 
data, so the resulting chart/summary data is on a monthly basis (I 
believe).

Is there a flag for results to be presented on an annualized basis?

Thank in advance - and apologies for overlooking something clear.  I did 
try to search the docs first :)
Regards,
Matt
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Matt,

PerformanceAnalytics has all the tools you need for those things. EG
Return.annualized, and so on.

-Ilya
On Wed, Mar 16, 2016 at 2:06 PM, <matt at considine.net> wrote:

            

  
  
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Hi Ilya, 

Thank you for the heads up on that. I'm thinking what I need to do is
pass the functions calculated moments, as seen here 


http://stackoverflow.com/questions/26745976/create-efficient-frontier-in-portfolioanalytics-without-an-xts-object


So I'll play with that. 

Regards, 

Matt
On 2016-03-16 13:12, Ilya Kipnis wrote:

            
Links:
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[1] https://stat.ethz.ch/mailman/listinfo/r-sig-finance
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On Wed, 2016-03-16 at 13:06 -0500, matt at considine.net wrote:
Matt, 

It's simple, but not as simple as a flag.

You need to add the annualized metrics to the portfolio specification
with a multiplier of 0.

Then you can plot your efficient frontier using all the standard
PortfolioAnalytics tools calling those metrics as axes of your plots.

Let me know if you need a fully worked out example, but I think there
are examples in some of the vignettes and presentations that do
something similar with annualized standard deviation.

Regards,

Brian