Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025)

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Portfolio Theory in Investment Decision Making: A Case Study of Xiaomi, Apple, and Samsung

Authors
Sai Na1, *
1Singapore Institute of Management, 461 Clementi Road, Singapore, 599491, Singapore
*Corresponding author. Email: nsai001@mymail.sim.edu.sg
Corresponding Author
Sai Na
Available Online 17 September 2025.
DOI
10.2991/978-94-6463-835-6_51How to use a DOI?
Keywords
Xiaomi; Apple; Samsung; Portfolio; Risk Analysis; Sharpe Ratio; Correlation Coefficient
Abstract

The study analyses the historical stock data of Xiaomi, Apple, and Samsung and examines their investment risk and return characteristics. It discusses the possibility of building an optimised asset portfolio. By examining key financial indicators, including each company’s standard deviation, average return, expected portfolio return, Sharpe ratio and correlation coefficient were used to obtain the corresponding results. The author finds that Xiaomi has the highest average return. However, the positive correlation between Apple and Samsung is higher. This suggests that Apple and Samsung tend to move more in the same direction in the stock market. It combines these stocks into a portfolio that limits the benefits of diversification. Therefore, it is concluded that constructing portfolios to achieve effective risk diversification by considering correlations between assets is crucial. The analysis is beneficial to help investors build a suitable investment strategy. Investors can optimize the risk-adjusted return of the portfolio by choosing assets with low correlation.

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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Volume Title
Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
17 September 2025
ISBN
978-94-6463-835-6
ISSN
2352-5428
DOI
10.2991/978-94-6463-835-6_51How to use a DOI?
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.

Cite this article

risenwbib
TY  - CONF
AU  - Sai Na
PY  - 2025
DA  - 2025/09/17
TI  - Portfolio Theory in Investment Decision Making: A Case Study of Xiaomi, Apple, and Samsung
BT  - Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025)
PB  - Atlantis Press
SP  - 482
EP  - 487
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-835-6_51
DO  - 10.2991/978-94-6463-835-6_51
ID  - Na2025
ER  -