## Graphical display of back-test result par(mfrow = c(2, 1)) ## Plotting of equity curves plot(EquityBL, main = "Wealth Progression", ylab = "Value", xlab = "") lines(EquityPrior, col = "darkgrey", lty = 2) lines(EquityEw, col = "grey", lty = 3) legend("topleft", legend = c("Black-Litterman", "Prior", "Equal-Weight"), col = c("black", "darkgrey", "grey"), lty = 1:3) ## Relative performance RelOut <- cbind((EquityBL / EquityPrior - 1) * 100, (EquityBL / EquityEw - 1) * 100) barplot(RelOut, xlab = "", ylab = "Percentages", main = "Relative Performance", ylim = c(0, 20), beside = TRUE, legend.text = c("Against Prior", "Against EW"), args.legend = list(x = "topleft")) box() ## Boxplots of weights par(mfrow = c(2, 1)) boxPR <- coredata(WPriorL1) colnames(boxPR) <- ANames boxplot(boxPR, ylim = c(-0.8, 0.8), main = "Based on Prior Distribution") abline(h = 0, col = "grey") boxBL <- coredata(WBlL1) colnames(boxBL) <- ANames boxplot(boxBL, ylim = c(-0.8, 0.8), main = "Based on Posterior Distribution") abline(h = 0, col = "grey")