In Portfolio.Return coding

Question

I do my portfolio analysis and I want to calculate Return.portfolio but I do not get logic behind rebalance_on part which is part of code. I can choose daily, monthly or yearly but I do not know according what I should choode. My dataset covers 3 years period of time.

Answer 1

from a new contributor to another your question isn't following Stack overflow guidelines. Always check if there are vignettes or examples of a function before asking a question. It is helpful if you use a reproducible coding example.

Anyway, I will try to help since I study finance.

I'm assuming your question is about return.portfolio() form the PerformanceAnalytics package. Without a code I can only guess.

The argument 'rebalance_on' is used to periodically rebalance the number of assets in your portfolio to maintain an equal weight portfolio.

The return.portfolio() function vignette ( https://cran.r-project.org/web/packages/PerformanceAnalytics/vignettes/portfolio_returns.pdf ) has explanations on portfolio return calculations and the function usage.