Abstract
Portfolio optimization is now playing a key role in the financial sector, investors turn to portfolio optimization to make trade-offs between the expected return and risk. Based on the background of the rapid development of new energy in China. The purpose of this paper is to conduct an asset allocation analysis in the field of the new energy sector. This paper selected nine representative companies from the sector, then this paper analyzed the asset portfolio weights using a mean-variance model, and conducted portfolio tests using real data to obtain the cumulative portfolio returns. The results show that BYD accounts for the largest share in both the maximum Sharpe ratio model and the minimum variance model. And besides, the evaluation of the portfolio weights shows that the maximum Sharpe ratio model performs best. These findings can be used as a reference for investors who are interested in the new energy sector.
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