The Social Network Analysis Of The Shanghai Stock Market Based On The Correlation Cofficient Of The Stock Price

With the rapid development of the stock market in our country, the stock isincreasingly becoming a science, many experts and scholars having study the stockmarket from different academic areas on different aspects. Complex networkanalysis on the stock market is one of the commonly used method in these analysis,but most of the current study is in the U.S. stock market, in china, the researchobject to China’s stock market is still rare. This paper use the complex networksstudy the Shanghai A shares, and treat the stock market as a social network,Introducing the social network analysis, to explore the network characteristics ofChina’s stock market.Social network refers to a collection of social actors Department, In this paper,we use the Shanghai A-share as our object, select the relevant Shanghai A-share datafrom2009-2011, and calculated the correlation coefficient between the stock basedon the weekly closing price of the stock. And on this basis, we build the stocknetwork. Whit the the principle of fully connected and complete information, weselected about one hundred fifty stocks from all stock, as the object of this study.Then, we used social network analysis methods analyzes the stock network,including Center analysis, Cohesive Subgroup analysis and small-world effectanalyzes. The results show that, there exits few stocks in the entire networkoccupies absolute advantage, and a statistical results showed that, the small part ofstocks in the stock market which occupied with absolute resources are very highconnectioned, and the small part of stocks are mainly financial stocks.In the Chapter4,we analysis the complex network characteristics of the stockmarket from the view of the complex network, based on the stock network build inthe Chapter4.In the stock market,there do exits a small part of stock whichoccupied absolutely advantages in the stock market, and the stock market is ascale-free network, the distribution of the stock degree presents a power-lawdistribution. Finally, we established a degree-based index in order to reflect thevariation of the stock market and to explore the advantage stocks, The result isconsistent with the findings in the third chapter, the stock market does exist a smallpart of stock which plays a very important influence in the entire stock market, andmost of this are financial stocks.In this paper, we use the social network methods to analysis the stock market,which is a innovation in method,and treat the stock market as a social network, composed each stock in the market as a member of the social network.We analysisthe stocks’ social attributes as well as it’s complex network characteristics, and thenwe explore the existence of a few dominant stock, this paper has a certain role ininnovation and pioneering. Which has a theoretical significance and practical sense.