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This study involved constructing an investment portfolio according to the buy-and- hold strategy, a passive management approach based on purchasing stocks and retaining them for at least one year to achieve returns at the end of the year. This strategy's objective is to retain shares for an extended period to achieve a return meeting the investor's ambitions. The investment portfolio was built from main economic sectors in Iraq Stock Exchange, and the portfolio weights were based on two inputs: the buy-and-hold approach using equal weights and the efficient approach using optimization to obtain the best risk-adjusted return portfolio. To accomplish the highest return for the portfolio at a given risk level based on Sharpe ratio. The study period was throughout March 2020 to August 2023, and the portfolio performance evaluation included all sectors during Covid19 according to the Sharpe ratio (risk-adjusted return). The study sample comprises from 12 stocks from different sectors of Iraq stock exchange as in the table.1.

Table 1 This study involved constructing an investment portfolio according to the buy-and- hold strategy, a passive management approach based on purchasing stocks and retaining them for at least one year to achieve returns at the end of the year. This strategy's objective is to retain shares for an extended period to achieve a return meeting the investor's ambitions. The investment portfolio was built from main economic sectors in Iraq Stock Exchange, and the portfolio weights were based on two inputs: the buy-and-hold approach using equal weights and the efficient approach using optimization to obtain the best risk-adjusted return portfolio. To accomplish the highest return for the portfolio at a given risk level based on Sharpe ratio. The study period was throughout March 2020 to August 2023, and the portfolio performance evaluation included all sectors during Covid19 according to the Sharpe ratio (risk-adjusted return). The study sample comprises from 12 stocks from different sectors of Iraq stock exchange as in the table.1.

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3.1. Buy-and-hold strategy portfolio of 12-stock from all sectors under Covid-19 outbreak. 3.1. Buy-and-hold strategy portfolio of 12-stock from all sectors under Covid-19 outbreak. Table (3) shows most correlation coefficients are weakly positive and negative. The strongest negative correlation is between Al-Karkh Games City (SKTA) and Bank of Baghdad (BBOB), with a correlation coefficient of (-0.3521152). This is good for investors to benefit from diversification when investing in these two companies. The highest positive correlation of 0.443599 is between Babylon Hotel (HBAY) and Karkh Games City (SKTA). This is worthless since their investment patterns overlap, so diversification has no potential benefit as their returns move together. Ses.. aee oe oe. a. ae ge - we a7 Saag ra ae ees
3.1. Buy-and-hold strategy portfolio of 12-stock from all sectors under Covid-19 outbreak. 3.1. Buy-and-hold strategy portfolio of 12-stock from all sectors under Covid-19 outbreak. Table (3) shows most correlation coefficients are weakly positive and negative. The strongest negative correlation is between Al-Karkh Games City (SKTA) and Bank of Baghdad (BBOB), with a correlation coefficient of (-0.3521152). This is good for investors to benefit from diversification when investing in these two companies. The highest positive correlation of 0.443599 is between Babylon Hotel (HBAY) and Karkh Games City (SKTA). This is worthless since their investment patterns overlap, so diversification has no potential benefit as their returns move together. Ses.. aee oe oe. a. ae ge - we a7 Saag ra ae ees
Source: outputs of Excel portfolio formation Table (4) shows the equal weight sector portfolio return was 0.000158 with a standard deviation and variance of 0.0490727 and 0.0024081, respectively, and a Sharpe ratio of 0.2740599. This is poor performance because it is valueless since the portfolio return is less than the 0.0024 risk-free return. To reach the optimal sector portfolio, optimization was used. ‘able (3) Correlation matrix for 12 stocks from sector sample during Covid-19 outbreak.
Source: outputs of Excel portfolio formation Table (4) shows the equal weight sector portfolio return was 0.000158 with a standard deviation and variance of 0.0490727 and 0.0024081, respectively, and a Sharpe ratio of 0.2740599. This is poor performance because it is valueless since the portfolio return is less than the 0.0024 risk-free return. To reach the optimal sector portfolio, optimization was used. ‘able (3) Correlation matrix for 12 stocks from sector sample during Covid-19 outbreak.
Table (6) Correlation matrix for 12 banking stocks during Covid-19 outbreak. ee Ee ee Table (6) shows most banking sector correlations are weakly positive and negative. The strongest negative correlation is between Gulf Commercial Bank (BGUC) and Iraqi Islamic Bank BIIB at -0.3707, indicating diversification benefits when investing in them. The strongest positive correlation of 0.65397 is between Bank of Middle East (BIME) and Bank of Baghdad (BBOB), and 0.65086 between Assyria International Bank (BASH) and Bank of Middle East (BIME), indicating no diversification benefit since their returns move together. Table (6) Correlation matrix for 12 banking stocks during Covid-19 outbreak.
Table (6) Correlation matrix for 12 banking stocks during Covid-19 outbreak. ee Ee ee Table (6) shows most banking sector correlations are weakly positive and negative. The strongest negative correlation is between Gulf Commercial Bank (BGUC) and Iraqi Islamic Bank BIIB at -0.3707, indicating diversification benefits when investing in them. The strongest positive correlation of 0.65397 is between Bank of Middle East (BIME) and Bank of Baghdad (BBOB), and 0.65086 between Assyria International Bank (BASH) and Bank of Middle East (BIME), indicating no diversification benefit since their returns move together. Table (6) Correlation matrix for 12 banking stocks during Covid-19 outbreak.
Table (8) Weights of 12 banking stock portfolio during Covid-19 outbreak Technium Business and Management (TBM) Vol. 5, pp.79-87 (2023) ISSN: 2821-4366 www.techniumscience.com
Table (8) Weights of 12 banking stock portfolio during Covid-19 outbreak Technium Business and Management (TBM) Vol. 5, pp.79-87 (2023) ISSN: 2821-4366 www.techniumscience.com
Source: outputs of Excel portfolio formation
Source: outputs of Excel portfolio formation
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