Rebalance

A calculator which tells you how to split your investment amongst your portfolio's assets based on your target asset allocation.

To use it, install the package and write a driver file as described below.

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    <h2 class="ui dividing header">Installation</h2>

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                <h3 class="ui header">Clone the repository:</h3>

.. code-block:: bash

git clone https://github.com/siavashadpey/rebalance.git

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                <h3 class="ui header">Install the package:</h3>

.. code-block:: bash

cd rebalance
pip3 install .

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    <h2 class="ui dividing header">Example</h2>

                <h3 class="ui header">Make a driver file:</h3>

                <p> The driver file is where we create our portfolio. We specify all of its assets and the available cash we have to invest. </p>
        <p> Follow the steps below for a detailed description. Alternatively, you can simply modify
        <a href="https://github.com/siavashadpey/rebalance/blob/master/rebalance/portfolio_examply.py/">the example driver file</a>.

.. code-block:: bash

cd rebalance
touch driver_file.py

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                <h3 class="ui header">Import all necessary packages:</h3>

.. code-block:: python

from rebalance import Portfolio

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                <h3 class="ui header">First we create our portfolio:</h3>

.. code-block:: python

# My portfolio
p = Portfolio()

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                <h3 class="ui header">Then we add our assets:</h3>
                <p> We must specify the ticker symbol and the quantity of each asset we currently have in our portfolio.</p>
        <p></p>
        <i>The portfolio used in this example is one of 
            <a href="https://www.canadianportfoliomanagerblog.com/model-etf-portfolios/">
            Canadian Portfolio Manager</a>'s model portfolios. This blog along with 
            <a href="https://canadiancouchpotato.com/getting-started/">Canadian Couch Potato</a>
        advocate low-cost, globally diversified index funds for DIY investors. </i>

.. code-block:: python

# Assets in portfolio
# The price will be retrieved automatically
tickers = ["XBB.TO",   # iShares Core Canadian Universe Bond Index ETF
           "XIC.TO",   # iShares Core S&P/TSX Capped Composite Index ETF
       "ITOT",     # iShares Core S&P Total U.S. Stock Market ETF
       "IEFA",     # iShares Core MSCI EAFE ETF
       "IEMG"]     # iShares Core MSCI Emerging Markets ETF
quantities = [36, 64, 32, 8, 7]
p.easy_add_assets(tickers=tickers, quantities=quantities)

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                <h3 class="ui header">We also need to add cash to our portfolio: </h3>
                <p> This is the amount that we are investing. We can add cash in different currencies.</p>

.. code-block:: python

# Cash in portfolio
cash_amounts = [3000., 200.]
cash_currency = ["USD", "CAD"]
p.easy_add_cash(amounts=cash_amounts, currencies=cash_currency)

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                <h3 class="ui header">Finally, we need to specify our target asset allocation:</h3>
        <i> The target asset allocation used in this example is that of an
             aggressive portfolio with 80% equities and 20% bonds (XBB.TO). </i>

.. code-block:: python

# Target asset allocation (in %)
target_asset_alloc = {
"XBB.TO": 20,
"XIC.TO": 20,
"ITOT":   36,
"IEFA":   20,
"IEMG":    4
}

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                <h3 class="ui header">Let the optimizer rebalance our portfolio!</h3>

.. code-block:: python

# rebalance
p.selling_allowed = False # We don't want to sell any of our assets for this case
p.rebalance(target_asset_alloc, verbose=True)

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                <p>You should see something similar to this (the actual values might differ due to changes in prices and exchange rates).</p>

.. code-block:: bash

  Ticker      Ask     Quantity      Amount    Currency     Old allocation   New allocation     Target allocation
                       to buy         ($)                      (%)              (%)                 (%)
 ---------------------------------------------------------------------------------------------------------------
   XBB.TO    33.43       30         1002.90      CAD          17.52            19.99               20.00
   XIC.TO    24.27       27          655.29      CAD          22.61            20.01               20.00
     ITOT    69.38       10          693.80      USD          43.93            35.88               36.00
     IEFA    57.65       20         1153.00      USD           9.13            19.88               20.00
     IEMG    49.14        0            0.00      USD           6.81             4.24                4.00

 Largest discrepancy between the new and the target asset allocation is 0.24 %.

 Before making the above purchases, the following currency conversion is required:
     1072.88 USD to 1458.19 CAD at a rate of 1.3591.

 Remaining cash:
     80.32 USD.
     0.00 CAD.

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.. |Build Status| image:: https://travis-ci.org/siavashadpey/rebalance.svg?branch=master :target: https://travis-ci.org/siavashadpey/rebalance.svg?branch=master

.. |Coverage| image:: https://coveralls.io/repos/github/siavashadpey/rebalance/badge.svg?branch=master :target: https://coveralls.io/repos/github/siavashadpey/rebalance/badge.svg?branch=master

.. |Code Factor| image:: https://www.codefactor.io/repository/github/siavashadpey/rebalance/badge :target: https://www.codefactor.io/repository/github/siavashadpey/rebalance

.. |Docs| image:: https://readthedocs.org/projects/rebalance/badge/?version=latest :target: https://rebalance.readthedocs.io/en/latest/?badge=latest :alt: Documentation Status

siavashadpey / rebalance

readme

Rebalance