Investment Opportunities and Strategies in an Era of Coronavirus Pandemic

25 Pages Posted: 3 Apr 2020 Last revised: 3 Jun 2020

See all articles by Diana Tashanova

Diana Tashanova

University of Illinois at Urbana-Champaign - College of Business

Ainur Sekerbay

University of Illinois at Urbana-Champaign - Department of Finance

Danni Chen

University of Illinois at Urbana-Champaign

Yuwen Luo

University of Illinois at Urbana-Champaign

Shuyi Zhao

University of Illinois at Urbana-Champaign

Tony Zhang

University of Illinois Urbana Champaign

Date Written: April 2, 2020

Abstract

The COVID-19 continues to hit the world economy as well as the financial markets. As a result of the coronavirus spread across all continents, the majority of the investors face their portfolios painted in red ink, even though there are still opportunities to gain from the current pandemic situation. The traditional investment strategies have been well studied and well documented during economic booming. However, few research papers aimed at determining investment strategies during pandemic times. This paper is aimed to provide a thorough study of the factors affecting the stock prices, and to discuss unique investment strategies with appropriate risk management through the pandemic era. In this paper, an industry sector analysis is conducted, and factors affecting the stock market are analyzed by using alternative data sets as an additional source of tracking behavioral finance and developed a seven-step strategy. The results indicate that there are several industrial sectors that gained during the pandemic and could keep this pace in the nearest future and using the seven-step strategy could help in creating a full picture of the stock’s performance on the market.

Keywords: investment opportunities, investment strategies, COVID-19, Coronavirus outbreak, pandemic, factors, stock market, stock price, evolutionary, revolutionary, financial valuation, financial statement, e-commerce industry, behavioral finance, alternative data

Suggested Citation

Tashanova, Diana and Sekerbay, Ainur and Chen, Danni and Luo, Yuwen and Zhao, Shuyi and Zhang, Qingquan, Investment Opportunities and Strategies in an Era of Coronavirus Pandemic (April 2, 2020). Available at SSRN: https://ssrn.com/abstract=3567445 or http://dx.doi.org/10.2139/ssrn.3567445

Diana Tashanova

University of Illinois at Urbana-Champaign - College of Business ( email )

Champaign, IL 61820
United States

Ainur Sekerbay (Contact Author)

University of Illinois at Urbana-Champaign - Department of Finance ( email )

1206 South Sixth Street
Champaign, IL 61820
United States

Danni Chen

University of Illinois at Urbana-Champaign ( email )

1106 Euclid St
Champaign, IL Champaign 61820
United States
2179796826 (Phone)
61820 (Fax)

Yuwen Luo

University of Illinois at Urbana-Champaign ( email )

601 E John St
Champaign, IL 61820
United States

Shuyi Zhao

University of Illinois at Urbana-Champaign ( email )

601 E John St
Champaign, IL 61820
United States

Qingquan Zhang

University of Illinois Urbana Champaign ( email )

Champaign, IL 61820
United States
6128406736 (Phone)
61820 (Fax)

HOME PAGE: http://https://giesbusiness.illinois.edu/profile/qingquan-zhang

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