Research on Investment Portfolios of the Low-Altitude Economy Sector in the Chinese Stock Market

DOI

10.2991/978-94-6463-835-6_53How to use a DOI?

Keywords

Markowitz Portfolio Theory; Principal Component Analysis; Low-Altitude Economy Sector

Abstract

This paper focuses on the low-altitude economy sector in the Chinese stock market, aiming to explore the applicability of the Markowitz Portfolio Theory in this sector. Using Python as a tool, 14 financial indicators were selected as common factors from four dimensions: profitability, operational capacity, development potential, and capital expansion ability. After data processing and principal component analysis, the top four stocks with the highest comprehensive scores were selected to construct an investment portfolio. The closing price data of the selected stocks were used to calculate the annualized rate of return, annualized covariance matrix, etc. The 1-year Chinese treasury bond yield was used as the risk-free rate to construct the efficient frontier and determine the optimal investment portfolio. The results show that the volatility of the optimal investment portfolio is lower than the average volatility of individual stocks, and the rate of return is higher than the average rate of return of individual stocks, verifying the feasibility of the Markowitz Portfolio Theory in this sector. It provides theoretical references and investment suggestions for investors. However, it also points out that investment decisions should not rely too much on historical data and should be combined with the actual situation.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Xueyu Zou
PY  - 2025
DA  - 2025/09/17
TI  - Research on Investment Portfolios of the Low-Altitude Economy Sector in the Chinese Stock Market
BT  - Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025)
PB  - Atlantis Press
SP  - 495
EP  - 500
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-835-6_53
DO  - 10.2991/978-94-6463-835-6_53
ID  - Zou2025
ER  -