CAPM Data Visualization and Calculation

This Streamlit app is designed to help you explore the Capital Asset Pricing Model (CAPM) by visualizing stock prices, calculating beta values, and estimating returns.

Overview

The app allows you to:

1. Select up to 4 stocks of your choice.
2. Choose the number of years for historical data.
3. View a dataframe displaying the selected stock prices and S&P 500 data.
4. Visualize stock prices over time and after normalization.
5. Calculate and display the beta values for each selected stock.
6. Estimate returns using the CAPM formula.

Usage

1. Stock Selection:

   • Use the multiselect dropdown to choose up to 4 stocks from options like TSLA, AAPL, AMZN, and more.

2. Data Range:

   • Input the number of years you want to consider for historical data.

3. Data Visualization:

   • Explore the dataframes showing stock prices, normalized prices, beta values, and estimated returns.
   • Visualize stock prices using interactive charts.

4. Understanding Results:

   • The app calculates beta values, representing the stocks' sensitivity to market movements.
   • Estimated returns are computed using the CAPM formula.

Instructions for Running Locally

1. Clone this repository to your local machine.

   git clone https://github.com/ArupSankarRoy/CAPITAL-ASSET-PRICING-MODEL-STREAMLIT.git
   cd CAPM_WEBAPPLICATION

2. Run the Streamlit app.

   streamlit run index.py

3. Open your web browser and go to http://localhost:8501 to view and interact with the app.

Note

• Ensure that you have Python installed on your machine.
• The app uses Streamlit, pandas, yfinance, and other libraries. Install any additional dependencies as needed.