portCloud {stockPortfolio}R Documentation

Plot a portfolio cloud

Description

Given a model, portCloud plots a cloud of possible portfolios.

Usage

portCloud(model, riskRange = 2, detail = 25, N = 3000, add = TRUE, col = c("#55550044"), pch = 20, subSamp = 1000, xlim = "default", ylim = "default", xlab = "Risk", ylab = "Return", ...)

Arguments

model An object of class "stockModel".
riskRange A factor to specify how large you would like the portfolio cloud to be. If X is the portfolio with minimum risk, then the portfolio cloud will look aesthetically best to approximately risk of riskRange*X.
detail A parameter that adjusts the appearance of the portfolio cloud. The default value is often adequate.
N A parameter for the number of portfolios to consider.
add If TRUE, then the points are added to the plot. If FALSE, a new plot is created.
col Color of the portfolios in the plot.
pch Plotting character of the portfolios.
subSamp The maximum number of portfolios to plot.
xlim Limits for the x axis. Only applied if add=FALSE.
ylim Limits for the y axis. Only applied if add=FALSE.
xlab Label for the x axis. Only applied if add=FALSE.
ylab Label for the y axis. Only applied if add=FALSE.
... If add=FALSE, additional arguments for plot. If add=TRUE, additional arguments for points.

Details

Which portfolios are actually plotted is dependent on the portfolio possibilities curve. A number of points along the curve, specified by detail and the stocks themselves are used to produce a relatively uniform looking portfolio cloud.

Value

A list of the following items:

ports The portfolios plotted.
R The estimated return associated with each row of ports.
risk The estimated risk associated with each row of ports.

Author(s)

David Diez and Nicolas Christou

See Also

stockModel, portPossCurve

Examples

data(stock94)
sm <- stockModel(stock94, model='SIM', index=25)
portCloud(sm, add=FALSE)
portPossCurve(sm, 2.5, add=TRUE)

[Package stockPortfolio version 1.0 Index]