The Analysis Of Influence Factors To Volatility

Volatility is in the core of financial study. In Modern financial theory, we used the volatility to measure the size of the risk to financial assets. Chinese stock market is an emerging market. Compared with foreign mature capital markets it has its unique characteristics, showing greater complexity and unpredictability, which make the impact of volatility particularly important.In the stock market, the relationship between trading volume and return has been widespread concern by scholars home and abroad. In this paper, the object is Shanghai stock market. We use the method of multiple regression, CARR model, Granger Causality Test, Variance Decomposition to analysis the impact of volatility on the trading volume.By reserching, we finnd that there is a kind of notable dynamic interdependence between the trading volume and the returns. The addition of trading volume, to some extent, reduced the volatility of the continuous audit. Trading volume and volatility has two-way causality relationship. Volatility has greater impact on forecasting. There is significant asymmetry between range volatility and trading volume. From one side, it shows that the trading volume on the impact of volatility has some limitations in the explanatory power. The development of Chinese stock market is not mature enough. We should improve the transmission system and the digest by the maket system, thus promoting the shift to the mature market.