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Long-term investment analysis of SPY vs BTC vs ETH

Project Description: The returns, volatility and risk for each asset will be analyzed using variance, standard deviation, beta, sharpe ratio, and calmar ratio. A short summary and various graphs will also be used to better portray the findings of the analysis.

Research Question to Answer: Whether SPY, BTC, or ETH was a better investment in 2016

Datasets to be Used: Daily closing prices of SPY, BTC, and ETH between 01-01-2016 & 5-30-2022

Presentation: https://docs.google.com/presentation/d/1ZoEKHR18mg7sCGPzZw6Q7FbuqkUyTXF3pUQ5JLAtT8I/edit?usp=sharing


Summary

In our analysis of SPY, ETH, and BTC, we decided to take a robust approach using a variety of different techniques to paint a clear picture of what the best investment was between the year 2016 and today. We took a look at volatility, returns, and different risk-adjusted ratios to reach out conclusion. The data showed that ETH was the best investment based on the growth it has sustained in the past six years. We then ran Monte Carlo Simulation based off various portfolios to see rough ballpark for future predictions. Etherum returned with the highest predictions for future ROI. This massive potential growth, however, comes with the highest risk and volatility of the three assets


Dependencies

Python
Pandas
Os
Hvplot
Alpaca_trade_api
MCForecastTools
Dotenv
Pathlib
Numpy
Quantstats

Contributors

Hamza Hegab
Nico Eiden
Joshua Mitchell
Mayura Solom


License

MIT

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