Proceedings of the International Conference on Financial Innovation, FinTech and Information Technology, FFIT 2022, October 28-30, 2022, Shenzhen, China

Research Article

Portfolio Construction Based Minimum Variance Model and Big Data Analysis for the U.S. Giant Company

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  • @INPROCEEDINGS{10.4108/eai.28-10-2022.2328403,
        author={Tianye  Li},
        title={Portfolio Construction Based Minimum Variance Model and Big Data Analysis for the U.S. Giant Company},
        proceedings={Proceedings of the International Conference on Financial Innovation, FinTech and Information Technology, FFIT 2022, October 28-30, 2022, Shenzhen, China},
        publisher={EAI},
        proceedings_a={FFIT},
        year={2023},
        month={4},
        keywords={portfolio; data analysis; investors; bigdata analysis},
        doi={10.4108/eai.28-10-2022.2328403}
    }
    
  • Tianye Li
    Year: 2023
    Portfolio Construction Based Minimum Variance Model and Big Data Analysis for the U.S. Giant Company
    FFIT
    EAI
    DOI: 10.4108/eai.28-10-2022.2328403
Tianye Li1,*
  • 1: Beijing royal school Beijing
*Contact email: litianye@st.brs.edu.cn

Abstract

In brief, the term portfolio investment denotes for the act of investing indirect means of financial market, normally through buying financial securities get expectations of earning returns or growth value at a period of time. This paper analyses the feasibility to construct the portfolio with several giant U.S. companies. To be specific, this paper first turning daily returns to several companies to monthlies. Subsequently, the correlations between several giant companies are calculated in the excel. Afterwards, maximum variance of every firm’s as well as minimum variance are obtained and the results are visualization including the efficient frontier. According to the analysis, technology enterprises will continue to grow with constantly innovating, while the risk level will also be reduced. Besides, service-oriented companies from the perspective of consumers will eventually be accepted by the market and continue to grow. These results shed light on guiding portfolio designs for investor to hedge the risk and obtain extra returns.