Calculate Option Prices from a Multivariate XTS of Volatilities and Spot Prices - r

Here is my code for downloading spot prices and calculating realized volatilities for a bunch of indices.
library(quantmod)
library(PerformanceAnalytics)
library(RQuantLib)
tickers.index = c("^RUT","^STOXX50E","^HSI")
myEnv <- new.env()
getSymbols(tickers.index, src='yahoo', from = "2004-03-26", to = "2012-10-10", env = myEnv, adjust=TRUE)
index <- do.call(merge, c(eapply(myEnv, Ad), all=TRUE))
index <-na.locf(index)
#Calculate daily returns for all indices and convert to arithmetic returns
index.ret <- exp(CalculateReturns(index,method="compound")) - 1
index.ret[1,] <- 0
#Calculate realized vol for all the indices
index.realized <- xts(apply(index.ret,2,runSD,n=20), index(index.ret))*sqrt(252)
index.realized[1:19,] <- 1
What I would like to do now is to calculate a series of Put prices with the function EuropeanOption for every index, every day with the following parameters:
Underlying Price - Today's close from the index XTS
Strike Price - Yesterday's close from the index XTS
Implied Vol - Yesterday's realized vol from the index.realized XTS
All other parameters will just be constants
I have tried to implement this with various attempts using apply and etc but couldn't get it to work. I don't have to use the RQuantLib - if other functions to calculate the price of an European option can make this easier, I am fine with it. Would greatly appreciate any help.
Thank you.

OK I got it working
puts.unwind <- mapply(EuropeanOption,"put",index,na.locf(lag(index,1),fromLast=TRUE),0,0,29/365‌​,index.realized)
puts.unwind <- xts(matrix(as.numeric(puts.unwind[1,]),nrow(index),ncol(index)),index(index))
First line calculates the puts and the second line extracts only the prices and reformats into an XTS.

Related

Create intraday chart with R using chartSeries, candleChart, or barChart?

Can chartSeries, candleChart, or barChart be used to create an intraday chart in R?
chartSeries, candleChart, and barChart are part of the quantmod package for R.
First we need some example intraday trading data, which you can get for free from a variety of sites including Google's Undocumented Finance API.
Get some example data (hourly intervals)
query_addr <- 'https://www.google.com/finance/getprices'
stock_symb <- 'GOOG'
stock_exch <- 'NASD'
intvl_size <- 60*60 # 1 hr interval (in seconds) -- use 24*this for daily
period_len <- '90d'
output_fmt <- 'd,o,h,l,c,v' # date, open, high, low, close, volume
library(httr)
resp <-
POST(url = query_addr,
query = list(q = stock_symb,
x = stock_exch,
i = intvl_size,
p = period_len,
f = output_fmt) )
df <-
read.csv(text = content(resp),
skip = 7,
header = FALSE,
stringsAsFactors = FALSE)
# we need a function to munge the date convention used by google finance API
g_fin_date <- function(dstr, intvl_size){
unix_dates <- numeric(length(dstr))
date_is_unix <- grepl('^a',dstr)
unix_dates[date_is_unix] <- as.numeric(sub('^a','',dstr[date_is_unix]))
for(i in 2L:length(dstr)){
if(!date_is_unix[i]){
unix_dates[i] <- unix_dates[i-1] + intvl_size
}
}
return(as.POSIXct(unix_dates,origin="1970-01-01",tz="GMT" ))
}
# see header of resp text for column order
names(df) <- c('close_date','Close','High','Low','Open','Volume')
df[,'close_date'] <- g_fin_date(df[,'close_date'], intvl_size=intvl_size)
Here I have just chosen hourly open (i.e. beginning price), high, low, close (i.e. ending price)-- but you can specify a finer level of detail if you desire -- it will still roll up to a larger period with quantmod::to.period().
Make an xts
Once we have a data frame (such as you might obtain from an API or flat file) then you need to convert the data to xts. Note that for xts the timestamp must be the row name (and can be dropped from the columns).
library(xts)
rownames(df) <- df$close_date
df$close_date <- NULL
Convert to OHLC (Open, High, Low, Close) using xts
This is straightforward aggregation -- see ?to.period
GOOG <- to.hourly(as.xts(df)) # for daily use to.daily(as.xts(df))
More chart examples available at quantmod.com.
Make some charts using quantmod
There are great charts already built into quantmod, including the ones you mentioned.
library(quantmod)
chartSeries(GOOG)
barChart(GOOG, theme='white.mono',bar.type='hlc')
candleChart(GOOG,multi.col=TRUE,theme='white')
Enjoy your charts
Me: "I'll take intra-day time series charts in R for 100 Alex!" :D
Alex: "THIS popular format for financial time series can be used by quantmod functions chartSeries, candleChart, and barChart to create intraday charts in R"
Me: "What is an xts object, indexed by data/time stamp, containing prices for the Open, High, Low, and Close?
Alex: "Right you are!"

Variable lagging in R error

I am trying to lag some prices I downloaded from yahoo market but I don't want the lag to be fixed. I would like to have it where depending on another DF or Values the lag period changes.
This extracts and formats the data:
library("quantmod")
library("PerformanceAnalytics")
library(dplyr)
nameOfStrategy <- "GSPC MACD"
#Specify dates for downloading data, training models and running simulation
trainingStartDate = as.Date("2000-01-01")
trainingEndDate = as.Date("2010-01-01")
outofSampleStartDate = as.Date("2010-01-02")
#Download the data
symbolData <- new.env() #Make a new environment for quantmod to store data in
getSymbols("^GSPC", env = symbolData, src = "yahoo", from = trainingStartDate)
trainingData <- window(symbolData$GSPC, start = trainingStartDate, end = trainingEndDate)
testData <- window(symbolData$GSPC, start = outofSampleStartDate)
indexReturns <- Delt(Cl(window(symbolData$GSPC, start = outofSampleStartDate)))
colnames(indexReturns) <- "GSPC Buy&Hold"
And this is the code I'm using to find market signals and then organize data:
signalB <- ifelse(MACD12$macd > MACD12$signal & lag.xts(MACD12$macd) < lag.xts(MACD12$signal),1,NA)
#If fastMA > slowMA on change go long
signalS <- ifelse(MACD12$macd < MACD12$signal & lag.xts(MACD12$macd) > lag.xts(MACD12$signal),-1,NA)
#Combines Buy and sell signals
Tsignal <- merge(signalB,signalS)
#Gets number of days---dont know when period starts but doesnt matter since we just want difference in days
Tsignal$dates =indexTZ(Tsignal)
Tsignal$dates =index(Tsignal)
#Combines Buy and Sell signal into overall signal
Tsignal$Signal <- ifelse(is.na(Tsignal$Buy),ifelse(is.na(Tsignal$Sell),NA,-1),1)
Tsignal$Tdate <- 0
#Gets 'Date' only if signal either buy or sell
Tsignal$Tdate <- ifelse(!is.na(Tsignal$Signal),Tsignal$dates,NA)
#Finds difference between the Sell sig and the last signal **** In this case it will work but future buying twice before
# selling will result in not getting returns of one of the purchases
Tsignal$lag <- ifelse(Tsignal$Signal == -1,diff(na.locf(Tsignal$Tdate)),NA)
Tsignal$lag <- ifelse(is.na(Tsignal$lag),0,Tsignal$lag)
Here is the problem:
lag(Cl(trainingData),Tsignal$lag))
#Warning message:
#In if (n == 0) return(x) :
#the condition has length > 1 and only the first element will be used
It returns all of the prices but lagged back at a period of 0 (ie just returns the prices). While the Tsignal$lag has a lot of zero's in it there are values greater than 1 spread throughout.
I need it to return the same price during the dates where Tsignal$lag = 0 and return the price lagged back the number of periods Tsignal$lag specifies.
Currently I am using the dplyr lag function but I have tried other packages with the lag function and I get the same error. Writing this I am thinking I might have to do a 'for' function but I'm not sure, I am fairly new to R.
Thanks for your help ahead of time!
Both the dplyr and stats lag functions require integers for the number of lag periods (?dplyr::lag), but your Tsignal$lag is a vector. To remain in the xts domain, one suggestion is to use the lag values as direct index offsets to the close prices, as in
Cl(trainingData)[(1:nrow(trainingData))-coredata(Tsignal$lag),]

Retrieve monthly Adjusted stock quotes using the quantmod package in R

I'm learning R this semester and this is my first assignment. I want to retrieve monthly Adjusted stock quotes within a set date range using a for loop. And once I am able to do that I want to merge all the data into a data frame.
My code so far retrieves daily stock quotes for 5 stock symbols within a set date range, it assigns the object to the environment specified, and places only the .Adjusted column in the list.
Could someone point me in a better direction in obtaining the monthly quotes and am I on the right track with my code.
Thanks.
#Packages
library(quantmod)
#Data structure that contains stock quote objects
ETF_Data <- new.env()
#Assign dates to set range for stock quotes
sDate <- as.Date("2007-08-31")
eDate <- as.Date("2014-09-04")
#Assign a vector of ticker symbols.
ticker_symbol <- c("IVW","JKE","QQQ","SPYG","VUG")
#Assign number of ticker symbols.
total_ticker_symbols <- length(ticker_symbol)
#Assign empty list to for each object contained in my environment.
Temp_ETF_Data <- list()
#Assign integer value to counter.
counter <- 1L
#Loop and retrieve each ticker symbols quotes from Yahoo's API
for(i in ticker_symbol)
{
getSymbols(
i,
env = ETF_Data,
reload.Symbols = FALSE,
from = sDate,
to = eDate,
verbose = FALSE,
warnings = TRUE,
src = "yahoo",
symbol.lookup = TRUE)
#Add only Adjusted Closing Prices for each stock or object into list.
Temp_ETF_Data[[i]] <- Ad(ETF_Data[[i]])
if (counter == length(ticker_symbol))
{
#Merge all the objects of the list into one object.
ETF_Adj_Daily_Quotes <- do.call(merge, Temp_ETF_Data)
ETF_Adj_Monthly_Quotes <- ETF_Adj_Daily_Quotes[endpoints(ETF_Adj_Daily_Quotes,'months')]
}
else
{
counter <- counter + 1
}
}
There's no need for the for loop. You can loop over all the objects in the environment with eapply:
getSymbols(ticker_symbol, env=ETF_Data, from=sDate, to=eDate)
# Extract the Adjusted column from all objects,
# then merge all columns into one object
ETF_Adj_Data <- do.call(merge, eapply(ETF_Data, Ad))
# then extract the monthly endpoints
Monthly_ETF_Adj_Data <- ETF_Adj_Data[endpoints(ETF_Adj_Data,'months')]
I know that this is an old question but this answer might help potential future users seeking a better answer.
quantmod has now introduced an additional parameter to the getSymbols function called periodicity which can take the values of daily, weekly, monthly.
I tested out the following and it seems to work as desired:
getSymbols("EURGBP=X", from = starting, src = 'yahoo', periodicity = 'monthly')
just use
to.monthly(your_ticker)

Need to calculate Rate of Change of two data sets over time individually and Net rate of Change

What I have done so far:
read.csv("filename.csv", header=TRUE)
df$header1
df$header2
Now I want to calculate the Rate of Change: Header1 is Dates, Header2 is prices
Rate of Change by date for all values comparative to preceding date.
I want to generate two separate columns of Rate of Change performing the same operation on another file.
Once rate of change is available for both the data sets, I will look to find the net rate of change for each date.
Where I am now:
df<-read.csv("audusd.csv", head = TRUE)
df$Date
df$Close
rate<- 100*diff(df$Close/df[-nrow(df),]$Close
This executes and then I get this:
> rate<- 100*diff(df$Close/df[-nrow(df),]$Close
+
+
In the console.
Thanks for all the help till now, please help further. :)
Also, I am a bit confused about whether I can get the results into a file? Or Do I have to run the code each time?
This certainly would help with my work in a big way, if I can understand and start using it.
You can also use the diff(...) function, which allows you to avoid looping through rows:
rate <- 100*diff(df$price)/df[-nrow(df),]$price
diff(...) calculates the difference row(n) - row(n-1). df[-nrow(df),] returns all rows of df except the last.
Here's a complete example with working code.
# all this just to get sample data.
# daily close for AAPL from 2013.01.01 - today
library(tseries)
library(zoo)
ts <- get.hist.quote(instrument="AAPL",
start="2013-01-01", end="2014-01-01",
quote="AdjClose", provider="yahoo", origin="1970-01-01",
compression="d", retclass="zoo")
df <- data.frame(ts)
df <- data.frame(date=as.Date(rownames(df)),price=df$AdjClose)
df <- df[!is.na(df$price),]
# calculate daily rate of change...
rate <- 100*diff(df$price)/df[-nrow(df),]$price
plot(df[-nrow(df),]$date,rate,type="l",xlab="2013",ylab="Pct. Change",main="APPL")
Given what you said in the comments about how you would do it in excel here is the R equivalent.
dataset=(1:10)^3 #Data in your case one of your columns
ratedata=NULL # Something you have to do so R can put data in this object
for(i in 1:(length(dataset)-1)){ratedata[i]=(dataset[i+1]-dataset[i])/dataset[i]*100} # A simple for function doing what you specified.
ratedata # Returning the rate data so you can look at it
FYI:This only works if your time is at regular intervals.

Get frequency for TS from and XTS for X12

I'm trying to automate some seasonal adjustment with the x12 package. To do this I need a ts object. However, I do not need a simple ts object, but one whose start date and frequency has been set. For any given series I could type that, but I will be feeding a mix of monthly or weekly data in. I can get the data from a quantmod as an xta object, but can't seem to figure out how to extract the frequency from the xts.
Here is some sample code that works the the whole way through, but I would like to pull the frequency info from the xts, rather than explicitly set it:
getSymbols("WILACR3URN",src="FRED", from="2000-01-01") # get data as an XTS
lax <- WILACR3URN #shorten name
laxts <- ts(lax$WILACR3URN, start=c(2000,1), frequency=12) #explicitly it works
plot.ts(laxts)
x12out <- x12(laxts,x12path="c:\\x12arima\\x12a.exe",transform="auto", automdl=TRUE)
laxadj <- as.ts(x12out$d11) # extract seasonally adjusted series
Any suggestions? Or is it not possible and I should determine/feed the frequency explicitly?
Thanks
This is untested for this specific case, but try using xts::periodicity for the frequency:
freq <- switch(periodicity(lax)$scale,
daily=365,
weekly=52,
monthly=12,
quarterly=4,
yearly=1)
And use the year and mon elements of POSIXlt objects to calculate the start year and month.
pltStart <- as.POSIXlt(start(lax))
Start <- c(pltStart$year+1900,pltStart$mon+1)
laxts <- ts(lax$WILACR3URN, start=Start, frequency=freq)
plot.ts(laxts)
The xts::periodicity suggestion was helpful to me. I've also found the following approach using xts::convertIndex works well for monthly and quarterly data. It is untested for weekly data.
require("quantmod")
require("dplyr")
getSymbols("WILACR3URN",src="FRED", from="2000-01-01") # get data as an XTS
lax <- WILACR3URN #shorten name
laxts <- lax %>%
convertIndex("yearmon") %>% # change index of xts object
as.ts(start = start(.), end = end(.)) # convert to ts
plot.ts(laxts)

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