Research On Stock Investment Strategies For Individual Investors Based On Quantitative Analyses

Chinese stock markets are retail markets,stock investment has comparative advantages,the development of environmental protection industry has a broad prospect,and quantitative strategies should be more simple and practical.So this paper takes the environmental protection industry as an example,based on the quantitative analyses,to study stock investment strategies suitable for individual investors.First of all,the theoretical bases discuss the behavior model of stock price and the market effectiveness,the fundamental analysis and the technical analysis,quantitative analyses and quantitative investments,the portfolio theory and CAPM model.Secondly,using the thoughts of the multiple factors,the trend,the momentum reversion and the mean reversion,we look for the quantitative relationships between the financial indicators,the trading price,the trading volume and the stock price.Then we predict the future stock price,disicuss the stock selection,the timing selection,the risk management,and form the individual share investment strategy.Thirdly,using the mean standard deviation model,we test the actual performances of beta,elasticity,correlation coefficient,rate of return,standard deviation and return risk ratio.Then we select the component stocks and calculate the investment ratios,discuss the active style and the passive style,and form the portfolio investment strategy.Finally,taking the environmental protection industry as an example,based on the quantitative analyses,this paper summarizes the stock investment strategies suitable for the individual investors,including the individual share investment strategy and the portfolio investment strategy.