SUNDAY WEEKLY #29 Hello EveryFinions!
It is such a delight to be writing to you again after about 3 months. I have been super busy. First it was the CFA level 2 exam and then it was this super important project I was working on (details below). Finally, I got around to doing what I love doing the most - writing the Sunday Weekly.
A lot happened over the last 3 months – some remarkable (Bezos, Branson space travel) and some utterly catastrophic (the second wave in India). However, we swear to stay true to our hope for a tomorrow which is better than today.
IN THIS WEEK'S NEWSLETTER
QUIZ Spreading your money on several different types of asset classes and assets is known as _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ? NEWS IN BRIEF
GAME : PRICE IS RIGHT This is the Ola Scooter, about to be built in Tamil Nadu in what is touted to be THE LARGEST FACTORY in the world spread across 500 acres, pre-booking opened for this electric scooter last week. On day, the company received 1 Lakh pre-orders which is about half of the number of vehicles TVS motors sells in an entire month. It offers a top speed of 100 Km/h and a maximum range of 150 Km per charge. You can get 75Km range in just 18 minutes of charge! What do you think its launch price could be? ![]() SPECIAL FEATURE Our ginormous equity database 6 weeks ago, we set out to build a database containing fundamental and pricing data of stocks that are traded in India. This has been in the works for over 6 months, but we really got to business only over the last 6 weeks. Before I tell you what we have achieved, here is why we needed this.
![]() So, with that in mind, we set out to build a Postgresql database collecting income statement/cash flow/balance sheet data for companies listed in India and their prices. Sure enough, after 6 weeks of burning the midnight oil, we today have a database with fundamental data for over 1500 companies going back 10 years. Our pricing database has data for over 3000 companies going back to 30 years. All of this was gathered from freely available data sources. And this is a phenomenal achievement! And now to the hard part 🙂
What next? We are testing out some interesting trading strategies using backtrader.py. We are also implementing some of the well-researched and documented factor models from Fama-French 3 factor model to US Barra equity Factor model. Our objective, like everybody else’s, is to find alpha. And in that search, on the road to El Dorado,we descend upon now.
Stay tuned, more updates coming in the next few months. SOUNDBITES That's what they said ![]()
COVER STORY On-chain Analysis ![]() In the very long past, people in Japan believed that a giant underground Namazu (catfish) lived right underneath the Japanese islands. This giant catfish was held down and kept still by the god Takemikazuchi. When the god let his guards down, the Namazu moved its fins or its tail causing the ground above it to violently shake. Of course, no catfish lives under Japan. The several tectonic plates that sit under the Japanese islands make it the number one location for earthquakes in the world. But as far as the mythology is concerned, what is clear is this - it is in human nature to try and make sense of the world around us – no matter how complicated or inexplicable things are. The realm of cryptocurrency is one such.
Why do cryptocurrencies have value? How much is an Ether actually worth? What is the age of a bitcoin (from when it is mined)? Who transferred the first bitcoins over to whom? Who did they send it to? A lot of these questions can be answered by using a technique called on-chain analysis. In this week's cover story, we give you an introduction to on-chain analysis and some of the popular metrics that we follow to track Bitcoin. IN CRYPTO NEWS
ANSWER TO QUIZ Diversification Is the concept of spreading your money on several different types of asset classes and assets. Diversification can help the portfolio achieve higher returns for the same level of risk (volatility). The only free lunch ever known in finance! ANSWER TO PRICE IS RIGHT ₹ 1 Lakh Is approximately what Ola’s electric scooter could end up costing. The final price has still not been announced yet. However, pre-orders are pouring in. People don’t care about the price. They want a piece of it! We predicted that this year is going to be about electric scooters in our predictions for 2021. You can read the whole article here. READ/WATCH/LISTEN
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