A Comprehensive List Of R Packages For Portfolio Analysis

R language is a free statistical computing environment; hence there are multiple ways/packages to achieve a particular statistical/quantitative output. I am going to discuss here a concise list of R packages that one can use for the modeling of financial risks and/or portfolio optimization with utmost efficiency and effectiveness. The intended audience for this article is financial market analysts interested in using R, and also for quantitatively inclined folks with a background in finance, statistics, and mathematics. Given the rise in the frequency of crises (the frequency of occurrence of financial market crises has certainly increased during the last 18 years or so; since the 1999 bubble burst), the modeling and measurement of financial market risk have gained tremendously in importance and the focus of portfolio allocation has shifted from the average side of the (mean, SD) coin to the SD side. Hence, it has become necessary to devise and employ methods and techniques that are better able to cope with the empirically observed extreme fluctuations in the financial markets.