Portfolio Designed Based on Markowitz Model in Terms of Wine Industry of China

Research Article
Open access

Portfolio Designed Based on Markowitz Model in Terms of Wine Industry of China

Wangfangyu Wan 1*
  • 1 University of Edinburgh, Edinburgh EH8 9JU, the United Kingdom    
  • *corresponding author W.Wan-1@sms.ed.ac.uk
Published on 27 April 2023 | https://doi.org/10.54254/2754-1169/6/2022151
AEMPS Vol.6
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-23-2
ISBN (Online): 978-1-915371-24-9

Abstract

Contemporarily, China's Wine industry has a special social status because of the prevalence of the culture of drinking. Since the 21st century, the Wine industry has flourished, and the stock price has risen sharply, which makes it become the favorite object of plenty of investors. Facing the unexpected COVID-19, the Wine industry recovered and maintained a rising trend immediately after a short blow, showing its strong risk resistance. In order to find the best investment strategy for Wine industry, this paper applies the financial analysis method to screen out stocks worth investing and the Markowitz modelto determine the optimal portfolio as a reference for investors with quantitative analysis. To be specific, several typical stocks in the industry are chosen and the effective frontier is obtained. According to the models, the performances of the optimal case are illustrated and demonstrated. These results shed light on guiding further exploration of Wine industry and other similar industries.

Keywords:

Portfolio Optimization., Wine Industry, Markowitz Portfolio Theory

Wan,W. (2023). Portfolio Designed Based on Markowitz Model in Terms of Wine Industry of China. Advances in Economics, Management and Political Sciences,6,304-311.
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References

[1]. Chen, Q., Hong, Q., Jiang, W., et al.” Analysis of the Development and Trend of Liquor Industry in China. 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022). Atlantis Press, 2465-2471 (2022).

[2]. Huang, Z., Xiao, H., Xu, S.: Research on the Choice of Enterprise Value Investment under the COVID-19 Epidemic: A Case Study of Chinese Liquor Industry. 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021). Atlantis Press, 982-994 (2021).

[3]. Kim, D., Francis, J. C.: Modern portfolio theory: Foundations, analysis, and new developments. John Wiley & Sons, 2013.

[4]. Mao, J.: Analysis on the Investment Strategy of Chinese Baijiu Industry Based on Markowitz Model. 2021 2nd International Conference on Internet and E-Business. 104-109 (2021)

[5]. Markowitz, H.: Portfolio selection. Portfolio selection. University of Chicago, 1955.

[6]. Sharpe, W. F.: Capital asset prices: A theory of market equilibrium under conditions of risk. The journal of finance, 19(3), 425-442 (1964).

[7]. Fama, E. F.: Efficient capital markets: reply. The Journal of Finance, 31(1), 143-145 (1976).

[8]. Ross, S. A.: The arbitrage theory of capital asset pricing. Handbook of the fundamentals of financial decision making: Part I. 11-30 (2013).

[9]. Holz, C. A.: The impact of the liability–asset ratio on profitability in China's industrial state-owned enterprises. China Economic Review, 13(1), 1-26 (2002).

[10]. Samarakoon, L. P., Hasan, T.: Portfolio performance evaluation. THE ENCYCLOPEDIA OF FINANCE, CF Lee, ed., Springer, 617-622 (2005).

Cite this article

Wan,W. (2023). Portfolio Designed Based on Markowitz Model in Terms of Wine Industry of China. Advances in Economics, Management and Political Sciences,6,304-311.

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The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 2022 International Conference on Financial Technology and Business Analysis (ICFTBA 2022), Part 2

ISBN：978-1-915371-23-2(Print) / 978-1-915371-24-9(Online)
Editor：Javier Cifuentes-Faura, Canh Thien Dang
Conference website: http://www.icftba.org
Conference date: 16 December 2022
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.6
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Chen, Q., Hong, Q., Jiang, W., et al.” Analysis of the Development and Trend of Liquor Industry in China. 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022). Atlantis Press, 2465-2471 (2022).

[2]. Huang, Z., Xiao, H., Xu, S.: Research on the Choice of Enterprise Value Investment under the COVID-19 Epidemic: A Case Study of Chinese Liquor Industry. 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021). Atlantis Press, 982-994 (2021).

[3]. Kim, D., Francis, J. C.: Modern portfolio theory: Foundations, analysis, and new developments. John Wiley & Sons, 2013.

[4]. Mao, J.: Analysis on the Investment Strategy of Chinese Baijiu Industry Based on Markowitz Model. 2021 2nd International Conference on Internet and E-Business. 104-109 (2021)

[5]. Markowitz, H.: Portfolio selection. Portfolio selection. University of Chicago, 1955.

[6]. Sharpe, W. F.: Capital asset prices: A theory of market equilibrium under conditions of risk. The journal of finance, 19(3), 425-442 (1964).

[7]. Fama, E. F.: Efficient capital markets: reply. The Journal of Finance, 31(1), 143-145 (1976).

[8]. Ross, S. A.: The arbitrage theory of capital asset pricing. Handbook of the fundamentals of financial decision making: Part I. 11-30 (2013).

[9]. Holz, C. A.: The impact of the liability–asset ratio on profitability in China's industrial state-owned enterprises. China Economic Review, 13(1), 1-26 (2002).

[10]. Samarakoon, L. P., Hasan, T.: Portfolio performance evaluation. THE ENCYCLOPEDIA OF FINANCE, CF Lee, ed., Springer, 617-622 (2005).

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