Research Article
Impact of Covid-19 on Portfolio Selection Based on Case Study of Pharmaceutical, High Technology and Expression Industry
@INPROCEEDINGS{10.4108/eai.17-6-2022.2322867, author={Yuran Chen}, title={Impact of Covid-19 on Portfolio Selection Based on Case Study of Pharmaceutical, High Technology and Expression Industry}, proceedings={Proceedings of the International Conference on Information Economy, Data Modeling and Cloud Computing, ICIDC 2022, 17-19 June 2022, Qingdao, China}, publisher={EAI}, proceedings_a={ICIDC}, year={2022}, month={10}, keywords={covid-19; portfolio; pharmaceutica industry; high-tech company; expression industry}, doi={10.4108/eai.17-6-2022.2322867} }- Yuran Chen
Year: 2022
Impact of Covid-19 on Portfolio Selection Based on Case Study of Pharmaceutical, High Technology and Expression Industry
ICIDC
EAI
DOI: 10.4108/eai.17-6-2022.2322867
Abstract
The spread of Covid-19 has an impact on humans in both physical and economic ways. The pandemic resulting from coronavirus changes the financial world a lot. Numerous sectors experienced dramatic changes in its market environment. The stock market is also largely affected by pandemic. It is worth to explore the impact of Covid-19 on portfolio selections. Three different sectors (pharmaceutical, high technology and expression) were chosen in this paper for building portfolios. The data includes the performance of the stock of three firms ((Shenzhen Kangtai Biological Products Co., Ltd, iFLYTEK co. LTD. and Shunfeng Express) from January 1, 2018, to December 31, 2021. Due to the influence of the Covid-19, this paper seperates the date into two periods. Before and after, the analysis has been done on the change in weight and marginal contribution of risk by the influence of Covid-19. The portfolio is built based on the Markowitz model. The research result shows that coronavirus has a negative effect on return and risk. The portfolio after Covid-19 has a drop in return combined with a drop in risk, which might be due to the decrease in the rate of return of major assets and the increase in diversification of assets.
