Please sugggest how to calculate alpha of a stock inse.
NSEPython
NSEPython is a Python wrapper created to scrap the NSEIndia APIs. It is an educational project.
Use appropriate threads for -
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Thats an interesting idea of content. I will check up once I get some free time for Unofficed’s new contents later tomorrow maybe.
Thank you Dexter….will look forward to your response
Yes. I am deving this course.
How to find the beta of Indian stocks using Python? - Unofficed
Deadline was crossed 2 years ago. I will do the alpha one in next 48 hours.
Sure.…thank you…I have been trying to
Find solution for the same but no
Luck.
Hi Dexter…any update…how can we calculate alpha for equity stocks?
Regards,
Suruchi Daga
I did the content yesterday I am waiting for some newton guy to validate before I share it to public.
Wait
Thank you for addressing the issue. Looking forward to the final solution.
Regards,
Suruchi Daga
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Yes, just wait till someone I know goes through it and validates it. (Usually takes less than a day but maybe all busy due to weekend and festivities) As I have no employees to oversee, its all other co-traders.
Hi Dexter… Nsefetch method is not working…have followed the suggestions shared in Solution: equity_history() function doesn't work - #4 by dexter but no luck.
Please suggest.
Its a complex platform-specific issue.
Try nsepythonserver in Google Collab and get back to me once.
Ok…I will try and then update you.
I am runing nsepython plugin in local not on any server. Hence, server plugin will not work.
Pls suggest an alternate.
Regards,
Suruchi Daga
Creating an open-source wrapper doesn’t allow me time to personally delve into your system.
Consider using the server edition in Google Collab as it is system environment independent and will operate effectively. If you prefer having it work on your laptop, you might want to hire a coder for assistance.
Ok…no worries….I will try alternates on my own.
Waiting for alpha solution.
Regards,
Suruchi Daga
Hi Dexter…I had read this article before too but unable to convert it into code using python.
It will be great if you could share the pointers around the same.
Regards,
Suruchi Daga
The code is in the article. Open it
I found the algorithm but not code.
Calculate Expected Return with the Capital Asset Pricing Model (CAPM):
Using CAPM, we calculate the expected return of the stock. This calculation considers the risk-free rate, beta, and the difference between the benchmark return and the risk-free rate. It represents the return expected for the level of risk associated with the stock.
Expected Return = Risk-free Rate + Beta * (Benchmark Return – Risk-free Rate)
Determine Alpha:
Finally, we compute Jensen’s Alpha by subtracting the expected return from the historical return. A positive alpha indicates that the stock has outperformed the benchmark, while a negative alpha suggests underperformance.
Alpha = Actual Stock Return – Expected Return
The value of Alpha offers insights:
- A positive Alpha indicates that the stock has outperformed the benchmark index.
- A negative Alpha means the stock has underperformed compared to the benchmark.
- An Alpha of zero suggests the stock’s performance matched the benchmark.
