The impact of COVID-19 on the new energy sector portfolio in the Chinese market
DOI:
https://doi.org/10.61173/3bg5h571Keywords:
New energy industry, COVID-19, Portfolio, Markowitz model, Sharpe ratioAbstract
The new energy industry is developing continuously in China, and new energy products are also gaining popularity. Investors’ attention to the new energy industry has increased significantly. In the Chinese market, due to the impact of the new coronavirus epidemic, the development of the entire new energy industry has ups and downs. This research selects 15 representative stocks in the new energy sector. After distinguishing between the epidemic era and the post-epidemic era, the Markowitz model is used to calculate the corresponding tangential portfolio under the maximum sharpe ratio of the two periods respectively. After comparing the change of position weight and analyzing the reasons for the change, four representative high-quality stocks are established. Corresponding to four hybrid large enterprises. Finally, according to the stability of the overall return and risk of the industry, it is concluded that investors in the new energy industry should regularly review the investment profit and loss, and appropriately incorporate traditional energy into the asset portfolio for risk hedging.
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