[R-SIG-Finance] PerformanceAnalytics package: modern econometrics for performance and risk (implemented)

Brian G. Peterson brian at braverock.com
Mon Mar 5 17:24:29 CET 2007


PerformanceAnalytics R package for Performance and Risk Analysis

We are pleased to release for the use and review of our peers and mentors
this R package of econometric tools for performance and risk analysis.

We are soliciting feedback on the PerformanceAnalytics package on
R-SIG-Finance in preparation for releasing this package to CRAN and
submission to one of the implementation journals.  We believe that the
code here is stable and usable, please report any problems that you
encounter.  We intend to continue adding documentation and examples
during this review period as well, so please suggest refinements,
examples, or references.  We intend to write a vignette that can include
inline equations, code, and graphics as part of the publication process,
but that may not be completed before the first release to CRAN.

PerformanceAnalytics R package version 0.9.3 (v1.0rc1)

Econometric tools for performance and risk analysis.

Description:
Library of econometric functions for performance and risk analysis of
financial portfolios. This library aims to aid practitioners and
researchers in using the latest research in analysis of both normal and
non-normal return streams.

We created this library to include functionality that has been appearing
in the academic literature on performance analysis and risk over the past
several years, but had no functional equivalent in R.  In doing so, we
also found it valuable to have wrapper functions for functionality easily
replicated in R, so that we could access that functionality using a
function with defaults and naming consistent with common usage in the
finance literature. The package covers Performance Analysis, Risk
Analysis (with a separate treatment of VaR), Summary Tables of related
statistics, Charts and Graphs, a variety of Wrappers and Utility
functions, and some thoughts on work yet to be done.

This R package contains over 80 original functions, and several
 additional wrappers to simplify parameters or provide accessible names
 for other functionality.

I suggest that you start with the summary documentation, either via the
attached PerformanceAnalytics-package.pdf
or as HTML with links here:
http://braverock.com/brian/R/PerformanceAnalytics-package.html

Below please find the index summary of all the functions included in the
documentation.

Regards,

    - Brian


#########################################################################
PerformanceAnalytics package index:

ActivePremium           Active Premium
BetaCoKurtosis          systematic kurtosis of an asset to the initial
                        portfolio
BetaCoSkewness          systematic skewness of an asset to an initial
                        portfolio
BetaCoVariance          systematic beta of an asset to an initial
                        portfolio
CAPM.alpha              calculate CAPM alpha
CAPM.beta               calculate CAPM beta
CAPM.utils              utility functions for CAPM CML, SML, and
                        RiskPremium
CalculateReturns        calculate simple or compound returns from
                        prices
CoKurtosis              calculate the co-moment for kurtosis of two
                        assets
CoSkewness              calculate the co-moment for skewness of two
                        assets
DownsideDeviation       function for downside risk of the return
                        distribution
InformationRatio        InformationRatio = ActivePremium/TrackingError
KellyRatio              calculate Kelly criterion ratio (leverage or
                        bet size) for a strategy
Omega                   calculate Omega for a return series
Return.annualized       calculate an annualized return for comparing
                        instruments with different length history
Return.cumulative       calculate a compounded (geometric) cumulative
                        return
SemiDeviation           deviation below the mean of the return
                        distribution
SharpeRatio             Sharpe Ratio
SharpeRatio.annualized
                        calculate annualized Sharpe Ratio
SharpeRatio.modified    calculate a modified Sharpe Ratio of
                        Return/modVaR
SortinoRatio            calculate Sortino Ratio of performance over
                        downside risk
StdDev                  Standard Deviation of Monthly Returns
StdDev.annualized       calculate an annualized Standard Deviation
TrackingError           Calculate Tracking Error of returns against a
                        benchmark
TreynorRatio            calculate Treynor Ratio of excess return over
                        CAPM beta
UpDownRatios            calculate metrics on up and down markets for
                        the benchmark asset
VaR.Beyond              calculate BVaR or loss Beyond traditional
                        mean-VaR
VaR.CornishFisher       calculate Modified Cornish-Fisher Value at Risk
VaR.Marginal            Calculate the Marginal VaR of each element of a
                        portfolio
chart.Bar               wrapper for barchart of returns
chart.BarVaR            Periodic returns in a bar chart with risk
                        metric overlay
chart.Boxplot           box whiskers plot wrapper, with sensible
                        defaults
chart.Correlation       correlation matrix chart
chart.Correlation.color
                        correlation matrix chart, in color
chart.CumReturns        Cumulates and graphs a set of periodic returns
chart.Drawdown          Time series chart of drawdowns through time
chart.Histogram         histogram of returns
chart.QQPlot            wrapper for qq.plot, with sensible defaults
chart.RegressionDiagnostics
                        regression diagnostics charts
chart.RelativePerformance
                        relative performance chart between multiple
                        return series
chart.RiskReturnScatter
                        scatter chart of returns vs risk for comparing
                        multiple instruments
chart.RollingCorrelation
                        chart rolling correlation fo multiple assets
chart.RollingMean       chart the rolling mean return
chart.RollingPerformance
                        wrapper to create a chart of rolling
                        performance metrics in a line chart
chart.RollingRegression
                        A wrapper to create charts of relative
                        regression performance through time
chart.Scatter           wrapper to draw scatter plot with sensible
                        defaults
chart.TimeSeries        Creates a time series chart with some
                        extensions.
charts.PerformanceSummary
                        Create combined wealth index, period
                        performance, and drawdown chart
charts.RegressionDiagnostics
                        multiple regression diagnostics charts in one
                        plot
charts.RollingPerformance
                        rolling performance chart
checkDataMatrix         check input data type and format to normalize
                        to a vector
checkDataVector         check input data type and format to normalize
                        to a vector
cummax.column           wrapper to calculate cummax on all columns in a
                        matrix
cumprod.column          wrapper to calculate cumprod on all columns in
                        a matrix
download.RiskFree       download 13-week US Treasury Bill Prices and
                        calculate 13-week US Treasury Bill returns
download.SP500PriceReturns
                        download S & P Prices and calculate S & P
                        returns
edhec                   EDHEC-Risk Hedge Fund Style Indices
findDrawdowns           Find the drawdowns in a timeseries.
maxDrawdown             caclulate the maximum drawdown from peak equity
mean.utils              calculate attributes relative to the mean of
                        the return series given incl. stderr, LCL, UCL
moment.fourth           calculate the fourth mathematical moment of the
                        return function
moment.third            calculate the third mathematical moment of the
                        return function
rollingCorrelation      rolling training period covariance/correlation
rollingFunction         wrapper to apply functions over a rolling
                        period
rollingRegression       Rolling Regression on Returns
rollingStat             wrapper to apply any function over a rolling
                        time window
sortDrawdowns           order list of drawdowns from worst to best
statsTable              wrapper function for combining arbitrary
                        function list into a table
table.AnnualizedReturns
                        Annualized Returns Summary: Statistics and
                        Stylized Facts
table.CAPM              Asset-Pricing Model Summary: Statistics and
                        Stylized Facts
table.Correlation       calculate correlalations of multicolumn data
table.DownsideRisk      Downside Risk Summary: Statistics and Stylized
                        Facts
table.HigherMoments     Higher Moments Summary: Statistics and Stylized
                        Facts
table.MonthlyReturns    Monthly Returns Summary: Statistics and
                        Stylized Facts
table.Returns           Monthly and Calendar year Return table
table.RollingPeriods    Rolling Periods Summary: Statistics and
                        Stylized Facts

#########################################################################
 R (http://r-project.org/) Econometrics for Performance and Risk Analysis

 Copyright (c) 2004-2007 Peter Carl and Brian G. Peterson

 This library is distributed under the GNU Public License (GPL)
 for full details see the file COPYING
#########################################################################


This package replaces, extends, and deprecates the work that we had
previously published here for review by this community:

https://stat.ethz.ch/pipermail/r-sig-finance/2006q3/000977.html
coskewness, cokurtosis, and higher beta co-moments of the return
distribution (implemented)
Brian G. Peterson Thu Aug 10 14:05:43 2006

https://stat.ethz.ch/pipermail/r-sig-finance/2006q4/001170.html
performance analytics functions missing from other libraries
 (implemented) Brian G. Peterson Sat Dec 9 16:48:43 CET 2006

--
773-459-4973 mobile
http://braverock.com/brian/resume-quant.pdf
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