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Copula and Portfolio

2 messages · babel at centrum.sk, Guy Yollin

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Dear users

Can you please advice some books that deals with Portfolio optimalization and copula models with R examples? Thank you

Jan
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Hi Jan,

A very good resource for learning about copulas in R is the paper "Enjoy 
the Joy of Copulas: With a Package copula" by Jun Yan.  It was published 
in the Journal of Statistical Software in 2007 and is available here:

http://www.jstatsoft.org/v21/i04/paper

Working through the examples in this paper will be very informative.  
Also the nice thing about the copula package is that it is able to fit 
copulas of more the 2 dimensions which allows you to solve real-world 
problems compared to other copula packages that only fit 2-dimensional 
copulas.  Another feature of this package is the capability to create a 
multivariate distribution object from the fitted copula (mvdc) and 
simulate from the multivariate distribution (rmvdc).

There are a number of tools for performing portfolio optimization with 
R.  Without being self-serving, perhaps a good overview is provided in 
this presentation for R/Finance 2009:

http://www.rinfinance.com/RinFinance2009/presentations/yollin_slides.pdf

There are also a number of discussions on using portfolio.optim from the 
tseries package on this board which may be a good way to get started.

Best,

Guy
On 6/9/2011 7:36 AM, babel at centrum.sk wrote: