Portfolio Management [ECN347]
A Guide to Setting-up R and RStudio
Clinton Watkins
What is R?
R is an opensource powerful programming language suited to mathematical and statistical computing, analysis and graphics.
- Download R from here: https://www.r-project.org/
RStudio provides a convenient interface for using R. Both R and RStudio are free.
- Download RStudio (free Desktop Open Source Edition) from here: https://www.rstudio.com/
- RStudio Cloud provides R and RStudio via a web browser. You can make a free account but the amount of time you can use the service for free is limited. This may be a good option if you have difficulties setting up the software on your own computer. Remember to copy any files you make from RStudio Cloud to your own computer so that you do not risk losing your work. RStudio Cloud can be found here: https://rstudio.cloud/
- Download RStudio (free Desktop Open Source Edition) from here: https://www.rstudio.com/
- We will use R via RStudio in this course to analyse securities risk and returns, and construct and portfolios.
After installing the software, open RStudio
- It should look something like this.
Set the folder RStudio uses when not in a project
From “Preferences” set the default folder to your documents or other convenient folder.
I set mine to my Dropbox folder.
After you have set the folder, quit and reopen RStudio.
Make a “project” for this course
A project is a folder where you can keep data, code and documents together.
You can have several different projects and set R to start up differently for each project. Projects allow you to keep your files organised, and let you customise how R works.
If you use R for other classes, your seminar or other purposes, you can create other projects for those.
Each project will have a separate folder and files to save the data in your environment, your history of code executed in the console, and the way you have R configured.
Make a new project from the Projects menu at the top-right of the screen.
Click “New Directory” for your project
Select “New Project”
Give the project folder a name
I use the name “portfoliomngt.”
Click “Create Project.”
Your desktop should look something like this