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Application of Using the Stock-Selecting Model in Quantitative Risk Management of Chinese Stock Market under the Epidemic

Jiaye Li

Abstract


This paper aims to research the stock market’s response to the epidemic. The differences between the results of the objective experiment and the surveyed people's subjective judgments will be compared. The researcher uses the back-testing model based on the data of the stock market in 2020 and applies a questionnaire survey on the target people. The researcher also pays attention to several stocks which have a higher trade volume in the back-testing model and do more tracking. Each industry’s stock shows its characteristics apparently. Under the epidemic in the stock market. The researcher mainly researches three industries: medical and biology, food and beverage, transportation. The results show that the impact of epidemic situation on the first two industries is positive and negative for the latter. With the data from the survey about people's attitudes and the tracking data from the specific stock, the researcher concludes that financial indicator is an important index in the situation of the epidemic. Among the people who pay more attention to the financial indicators under the epidemic, more people gain profits. Also, the conclusion provides suggestions on an individual’s stock investment strategy in the near future. Choose stocks with larger company scale and high liquidity is more assured.

Keywords


Chinese Stock Market; Industry; Back-Testing Model; Tracking; Financial Indicators

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References


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DOI: http://dx.doi.org/10.18686/fm.v6i1.3520

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