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Showing posts with the label portfolio

Financial models for the NBA

A portfolio analysis can be performed in order to analyze how effective the NBA teams were during the 2016 season. It is possible to think of both Eastern and Western Conferences to be a benchmark  that we can reference teams to. When we analyze each team's performance against the overall performance of the entire benchmark, it is possible to discover how effective and consistent teams are. This can tell us how risky or stable a team is, and how much of a pay off teams offer for being risky.  With this we can find that the most stable teams in the Eastern Conference are Chicago and Atlanta, and in the Western Conference were New Orleans and Utah. On the other hand, the most volatile teams were Philadelphia and New York in the Eastern Conference, and Houston and LA Lakers in the Western Conference.  Likewise, it can be found that the most representative teams for the performance of the Eastern Conference were Philadelphia and Miami, and for the Western Confere

The NBA champions and the Stock Market

Analyzing statistics in modern day sports is one of the prime sport-fan pastimes. However it is possible to capture more information than just a plain statistical description of the data. For example, it is possible to use financial models and techniques to understand performance in sports in a more insightful way. In  particular, in the case of the recent NBA finals, we can analyze the performance of each player as if it were a financial asset.  A financial asset or security is anything that has the potential of giving a financial return overtime, such as stocks, bonds, treasury bills, and others. In this way, our goal is to analyze and asses a player's performance, and identify how reliable and efficient he is. In the case of the 2016 NBA Champions, the Cleveland Cavaliers, we can perform this analysis by studying the player's individual performance compared to that of their conference during the 2016 season. Here we can determine how sensitive a player is wi