How to Rebalance Your Stock Portfolio with Python

Part II is Now Available Here

  • What are the Benefits of Rebalancing a Stock Portfolio?
  • Stock Weighting Methodologies and Python Snippets

What are the Benefits of Rebalancing a Stock Portfolio?

  • reduced portfolio risk,
  • increased portfolio diversity, and
  • avoiding mental investment biases.

Reduced Portfolio Risk

  • GME’s equity is worth $28,279 | GME’s portfolio weighting is 59.7%
  • TSLA’s equity is worth $12,709 | TSLA’s portfolio weighting is 26.8%
  • AMD’s equity is worth $2,581 | AMD’s portfolio weighting is 5.4%
  • GOOG’s equity is worth $2,065 | GOOG’s portfolio weighting is 4.4%
  • AMZN’s equity is worth $1,743 | AMZN’s portfolio weighting is 3.7%

Increased Portfolio Diversity

Avoiding Mental Investment Biases

Stock Weighting Methodologies and Python Snippets

  • Equal Weight,
  • Market Cap Weight, and
  • Efficient Frontier Weight.

Equal Weight Rebalancing

Market Cap Rebalancing

Efficient Frontier Rebalancing

Where to access clean market data

High-quality financial data. Tools built for developers. First-class, US-based support. Data doesn’t have to be hard or expensive.

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High-quality financial data. Tools built for developers. First-class, US-based support. Data doesn’t have to be hard or expensive.

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