Using estimated historical returns from a set of bonds we design a tool to estimate and compare different portfolio optimization techniques. The application has an R statistical software backend that generates the estimation of the different sets of restricted and unrestricted portfolios. A Shiny app is used to provide a frontend application that allows non-technical users to select bonds and use historical data to estimate different portfolio statistics (returns, duration, Sharpe, ratio) using a large range of predetermined portfolio models.
In addition, users can select the end results on the chosen portfolio allocation to determine portfolio performance and risk metrics.
The combination of R and Shiny app provide applications that are quantitatively robust providing the full benefits of innovative techniques in asset management, but most importantly they give access to upper management to support their decision-making process using the results provides or by quickly deriving new result by adjusting different options on selected assets, portfolio restrictions and metrics.