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“Everyone this is preet and this video will hopefully make the google motion charts a a little bit easier to understand and play with because they re very powerful and show a lot of data. So let s get started a couple of things to notice first of all is that there is an x and y axis. Now in the x axis. You can change what data shows up here so in this case.
We have the growth of one dollar. This is going to show you the growth of one dollar in various different asset classes. These asset classes here you can see we ve got the effets the tsx gold diversified portfolio three month t bills and long canadian bonds these are also listed here in this box. We can show so again one dollar invest in each of these different asset classes or the portfolio over various periods of time.
And actually be from 1972 2011. So that s 42 years of data. We also graph the annual return of course. When you ve got the same x and y data.
You re always going to be basically seeing the data move on a plane. So when you press play the date that the data gets visualized. So over time these would have been the inner returns of these various different portfolios. So so setting the x and y axis to the same thing is it going to tell you a lot.
So why don t we try let s see let s go with time and we ll take a look at annual return. But with all the data points being blue that kind of makes it hard to decipher. Which one s doing what so on the right here. We can change these options as well so we can say instead of the same color.
We can use unique colors. So now each asset class has got his own color now if you select one of these checkboxes. We can take a look at one particular asset class. Over time.
Let s back this up to the start and start it over again. So now we see gold and we re looking at the annual turn over these 42 different years. So you can see gold is very volatile especially in the 70s calm down a little bit in the 80s and 90s and ended up here. So again these are the range of returns for 42 years.
Now you can have multiple data points going at the same time. So you can put the trails here or you can remove them so the trails will show you the history and keep it on the chart as everything else is moving what else can you do you can change. There s another variable you can change here. And this is the size so instead of the size.
Just being static. You can have the size based on the annual return. So the higher up on the graph the higher up the inner return is the bigger. The data point will look or you can have it as the growth of one dollar.
So this would simulate the size of a portfolio for example. If you had invested one dollar. So if we start that over again you can see that the data points all start as small bubbles. But then they get bigger or smaller depending on basically their annual rates.
Return now. What else can we do we can take a look at the growth of one dollar instead of the annual return and this shows us a different way of looking at the at the data here so in this particular case. You know you can see that gold did pretty well. But then once you had some negative returns.
When the portfolio was bigger. It had some precipitous drops if for example we take a look at a diversified portfolio vs goal that s always a popular comparison i suppose what we ll see is the benefits of a diversified portfolio so again it s kind of boring. But it slow and steady seems to win the race over time and you can see that the size of that portfolio with a lump sum investment is higher with gold sorry went to first if i portfolio that was for gold over that 42 year time span obviously shorter periods of time you might have a different story. But over the long term diversification seems to work so i encourage you to play with all these variables that you can adjust.
And you know take a look at the different ways you can visualize the data now once you ve done that the other thing you should note is that there are different charts that you can actually look at and actually one more thing. I ll show you is that on the annual return. Let s change this time by growth one dollar and then i m going to change the size. I m sorry the color to be the annual return.
So this now overlays. A heat map onto the portfolio s or the asset classes show you three things now we re looking at time. We re also looking at the growth of one dollar. So the higher this is up on the chart.
The better the size is the growth of one dollar. So that sort of coincides with how high it is on the chart. But then the color will give you the annual return for that year. So you can see in this particular case.
The return is very high. So let s take a look at that data again now the colors are changing for the individual asset classes depending on the a no return so again there s many many different ways you can visualize this data. So this is your bubble motion chart we can actually switch this to one of two other different types of charts here. We have a column chart so again on the x axis.
How do you want these ordered is on growth of one dollar and it returned alphabetical well if you set it to alphabetical. These columns aren t going to move around on each other they re going to stay where this those three month tables. In this particular case is always going to be here. Now yeah.
Let s take a look at growth of one dollar. So from 1970. Now what you ll see is the growth of one dollar. So the the height of these columns represents the overall value of the portfolio and you just invest in one hour and left it there and you can see some of their doing really well and they re contracting and expanding in the quite volatile whereas the diversified portfolio almost seems to have only gone up steadily over time and again the the color in this particular case was set to annual return.
But you could change it to just being unique color. So they re always the same and again just play with it so you can change these settings. Sorry the y axis you can change the x axis you can select and deselect which ones are highlighted you can have trails on them in the motion chart you don t have trails in the column chart and then the last one you can look at isn t that interactive. It s just a line chart.
But you could take a look at values of for example to grow the one dollar at various points in time a little bit more easily with this chart. So there you have it there s three different charts and then some of them you have up to five dimensions of data that you can tweak with so have some fun with it and let us know in the comments section. If you ” ..
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