Building an investment portfolio using GARCH

In this paper we analyze investment portfolios of Chilean market, using the average model variance proposed by Markowitz, particularly using the variance-covariance matrix of unconditional and conditional, where the latter is estimated through GARCH models. Then, we evaluate the performance of these...

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Bibliographic Details
Authors: Gutiérrez Urzúa, Mauricio, Salgado I, Marcelo
Format: article
Status:Published version
Publication Date:2012
Country:Perú
Institution:Universidad Nacional Mayor de San Marcos
Repository:Revistas - Universidad Nacional Mayor de San Marcos
Language:Spanish
OAI Identifier:oai:revistasinvestigacion.unmsm.edu.pe:article/6254
Online Access:https://revistasinvestigacion.unmsm.edu.pe/index.php/idata/article/view/6254
Access Level:Open access
Keyword:portfolios
GARCH
evaluation.
portafolios
evaluación
Description
Summary:In this paper we analyze investment portfolios of Chilean market, using the average model variance proposed by Markowitz, particularly using the variance-covariance matrix of unconditional and conditional, where the latter is estimated through GARCH models. Then, we evaluate the performance of these portfolios using as a reference (benchmark) a market portfolio given by the general index of share prices (IGPA) of Chilean market.