Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)

The Differences Between Constructing a Portfolio and Single Stock and How to Compare Their Performance

Authors
Hanpeng Dai1, *
1Lee Shau Kee School of Business and Administration, The Open university HongKong, HongKong SAR 999077, China
Corresponding Author
Hanpeng Dai
Available Online 15 December 2021.
DOI
10.2991/assehr.k.211209.094How to use a DOI?
Keywords
Portfolio; Efficient Frontier; Sharpe ratio
Abstract

This article aims at the China stock market. It will focus on the difference between the single stock and stock portfolio. This paper expounds and discusses the relevant problems of calculating portfolio income from the aspects of theory and practice. The research will choose two assets from both the Pro-cyclical and Counter-cyclical industries and use their return of stock to calculate the mean and standard deviation. It will also use efficient frontier to construct the Global Minimum variance portfolio. What’s more, it also uses the Sharp ratio to further compare the differences between individual assets and portfolios. Through this research, the investor should know the importance of building a correct portfolio. The research shows that when the investor uses particular performance measures to compare the single stock and stock portfolio, the portfolio has greater performance than a single stock.

Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
15 December 2021
ISBN
10.2991/assehr.k.211209.094
ISSN
2352-5428
DOI
10.2991/assehr.k.211209.094How to use a DOI?
Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Hanpeng Dai
PY  - 2021
DA  - 2021/12/15
TI  - The Differences Between Constructing a Portfolio and Single Stock and How to Compare Their Performance
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 566
EP  - 571
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.094
DO  - 10.2991/assehr.k.211209.094
ID  - Dai2021
ER  -