5G/Cyber Security Portfolios
The Rise of 5G
5G stocks are all the rage now. More and more people are telecommuting, online commerce has greatly increased (thanks partly due to COVID-19). Businesses and companies need wider connectivity, faster communication networks and faster access to the data. The broad bandwidth, increased connectivity, faster downloading speed of 5G technology is expected to help all these issues.
In spite of all the publicity, so far the real experience with 5G is far from being satisfactory. But, as with any new technology, this is expected to change in the course of time. There has been considerable research going on to speed up the communication. Hence this might be a good time for investors to seriously consider having a portfolio consisting of 5G stocks.
One question is, how risky are these stocks compared to the market indices. They are highly volatile. But that is OK. Higher volatility means higher the reward. We have been looking at the risk factors of 5G stocks, using our new novel risk measure 'q-relative entropy' (TRE) discussed in A New Risk Measure, There is The risk values are calculated relative to the Fidelity NASDAQ ETF ONEQ, which closely tracks NASDAQ. The ETF ONEQ is used as reference because a big percentage of 5G stocks are in NASDAQ. Every two months during the first week, we publish a table giving the relative risk values of the 5G stocks in our list. This table can then be used to construct a 5G portfolio (using the step by step instructions given in Portfolio Management).
We have updated our 5G list to 90 stocks. More will be added in due course. It should be noted that our present 5G list also has a few Cyber Security stocks. What with the world becoming digital and increased fear of hackers, these stocks might do very well and it is worth taking a look at them. To get the latest 5G risk table for these 90 stocks, for October 2022 , click 5Grisktable_2022-10-01 .(YR-Month-DAY)
An example portfolio for 2022-10-01, created using Steps 1-4 in Portfolio Management is given below. with the risk range of our choice. Use this example to construct portfolio of your risk choice and the amount of money you want to invest.
Ticker risk file for 5G stocks for 2022-10-01
Risk range: .378 to .739, average .519
No. of stocks for the portfolio = 12,
Total Initial investment = $10000.
Investment/stock = 10000/12 = $833
The following table shows the securities chosen for the portfolio. Columns 1-4 give the ticker symbol, company name, risk value and the current price , for each security. Noting that an equal amount of money is to be invested in each security, the number of shares bought for each security is given in column 5.
The tools provided by EntropicDynamics are research tools to help self-directed investors evaluate securities. Information supplied is for information purposes only and should not be considered investment advice or an offer of guidance. Our research and tests are carried out on the past data, which is not a guarantee of future results. EntropicDynamics is not liable in any way for any financial loss that might occur in using the information and tools provided in this web site to future data.