Stocks
When using the Plutus:VaR API, you can include stock assets in your portfolio submission. Each stock position allows for the following customizable properties:
Properties
- Ticker: The unique identifier of the stock (e.g.,
"SPY"for the S&P 500 ETF). - Type: Specifies whether the position is
"long"or"short". - Quantity: The number of shares held.
Modeling Different Types of Stocks
The Plutus:VaR API can model a wide range of stocks, including those from different exchanges, sectors, and geographies. Here are some of the types of stocks you can model in your portfolio:
1. Domestic Stocks
These are stocks listed on exchanges within your home country. For example, stocks traded on the New York Stock Exchange (NYSE) or NASDAQ are considered domestic stocks if you’re in the United States. These stocks can be categorized by market capitalization (e.g., large-cap, mid-cap, small-cap), sector (e.g., technology, healthcare), or investment style (e.g., growth, value).
2. International Stocks
International stocks are those traded on foreign exchanges, such as the London Stock Exchange (LSE), Euronext, or Tokyo Stock Exchange (TSE). These may also be part of international market indices like the FTSE 100 or the Nikkei 225.
3. Exchange-Traded Funds (ETFs)
ETFs are funds that trade on stock exchanges, much like individual stocks, but they typically represent a collection of stocks, bonds, or other assets. Examples include the SPDR S&P 500 ETF (SPY) or the Invesco QQQ ETF (QQQ).
4. Preferred Stocks
Preferred stocks are a type of equity that has preferential treatment over common stocks in terms of dividends and liquidation. They are typically considered a hybrid between stocks and bonds, offering features of both.
5. Dividend Stocks
Dividend stocks are shares of companies that regularly distribute a portion of their profits to shareholders. These stocks tend to be more stable and provide a source of passive income for investors. Examples include Johnson & Johnson (JNJ) or Coca-Cola (KO).
6. Penny Stocks
Penny stocks are stocks of small companies that trade at low prices (typically under $5 per share). These stocks are known for their high volatility and speculative nature.
7. Growth vs. Value Stocks
Stocks can be categorized as growth stocks or value stocks based on the investing style. Growth stocks are expected to grow at an above-average rate compared to other companies, while value stocks are undervalued compared to their fundamentals.
8. Sector and Industry-Specific Stocks
You can model stocks from specific sectors or industries, such as technology, healthcare, finance, or consumer staples. Stocks in certain sectors, like technology (GOOG) or healthcare (PFE), may exhibit different risk profiles due to market dynamics.