I can't seem to find a way around the following problem. I have the following dataframe:
Daily Return(%)
-0.1
0.1
0.2
-.01
.04
0.12
and I want to have the portfolio value calculated. The initial value of my portfolio is 500 and after the calculation I should have the following dataframe
Daily Return(%) Portfolio Value
-0.1 450
0.1 495
0.2 594
-.01 588
.04 611
0.12 684
The forumla of calculating the portfolio value is 500+(500x(-0.1))+(450x0.1)+(495x0.2)....
I am struggling to put the formula above into code. Any help or guidance would be highly appreciated
Let us add
one then cumprod
df['Daily Return(%)'].add(1).cumprod()*500
0 450.000000
1 495.000000
2 594.000000
3 588.060000
4 611.582400
5 684.972288
Name: Daily, dtype: float64
df['p Value'] = df['Daily Return(%)'].add(1).cumprod()*500