Welcome to part fourth of our project and we have analyzed and educated Mary on the past performance
of our portfolio and your task is now to compare her portfolio with a similar design portfolio indexes
of other sectors.
So to say the five largest company of each sector and your colleagues already prepared appropriate indexes
for the other sectors so you can find these in the sector indexes.
Yes we file and with this we should analyze and compare the performance of Mary's large cap health care
portfolio with other sectors for the most recent four year period from 2015 until 2000 and 18 and then
we shall provide Mary with an index of normalized price chart where she can play around with.
So let's start coding here
and we still imported our large health care index.
So that's our index.
And then we imported the indexes for the other sectors from the UCSB fired sector indexes and we save
for the data frame and the rebel indexes.
So let's have a look here so here we have the other indexes for example for these sectors.
Basic industries energy finance technology or transportation.
And we have actually normalized the price data starting from 100 from the very last day of 2014 and
the end of 2000 and 18.
And in our next step we want to copy our health care index to our data frame indexes and we can create
a new column health care.
And we simply pass here our health care index.
So our panacea is here and let's have a look and actually pan us automatically alliances based on the
daytime index.
So here at the very last day of 2018 we have our health care index ending at eight hundred eighty eight.
And it's also for look at the very first rows here
so that's the first rows beginning with the thirty first of December 2014.
And um all indexes are starting with a base value of 100.
But here we have them on the right hand side our health care index starting at a value of five hundred
thirty one.
Originally our health care index started at the very last day of the year nineteen hundred ninety six
and therefore our first task is here to again normalize our health care index and we can do this by
dividing all values here by the very first value five hundred thirty one.
So we are actually overriding here the health care column in our index this data frame.
And as I said we divide each and every element by the first element and then we multiply with 100 so
let's have a look again here and now also our health care index starts at a base value of 100 at the
thirty first of December 2014.
And it's also quality at the Inform method
so we have total 11 sectors and we have a total of 1000 and six timestamps or rows.
And our final task here and step for is to create an interactive price chart and we can do this with
the plot Lee and cufflinks.
So we need to import your cufflinks as the C F and uh we can create an index of price chart with the
I plot method
so that's our index the price chart and then blue we have our healthcare index.
So it might make sense to select here so close up stayed on Hava so that's here.
Healthcare and actually at a very first glance the performance of the health care index is good.
Uh compared to the other indexes but it's actually not exceptional.
So we have here for example and read the consumer service sector are here in Orange.
The technology sector and actually from our pure price chart it is very hard to determine whether a
stock or a sector showed a good performance in terms of risk and return.
And therefore we have to do here a more detailed analysis and we will do this and the next steps step
5.
So to see there by.