The Differences Between Constructing a Portfolio and Single Stock and How to Compare Their Performance
- 10.2991/assehr.k.211209.094How to use a DOI?
- Portfolio; Efficient Frontier; Sharpe ratio
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.
- © 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 -