China's Industry Sector Index And The Shanghai Composite Index, Dow Jones Indexes Relationship Between

By factor analysis, the 23 industries in China to study the relationship between the tectonic plates will be 168 days in the daily closing data as a variable factor analysis, we get their principal components, then the principal components are converted to the Shanghai Composite Index and the Dow Jones Index by orthogonal transformation. By analysing, we found that each industry sector in China is more closely link, which showing a certain extent, a prospering, the characteristics of a loss for both sides. By using the principal component analysis, we get these two principal components industry index. When we convert these two principal components into the Shanghai Composite Index and the Dow Jones index, we find some plates are positively correlated with the two indices, and others are negatively correlated. The greatest feature of this paper is that by using the orthogonal transformation, the principal components which can not be directly observed can be converted to the Shanghai Composite Index and the Dow Jones Index which can be directly observed and used. The conclusions of this paper I hope this can make your investment decisions of investors play a direct role in guiding the investment strategy for the simplification of its positive meaning!...