An Empirical Study On The Dynamic Correlation Of The Financial Market Risk

In recent years,the tide of economic globalization has swept across the world.At the same time,global economic and financial events have occurred frequently.The risk-related relationship between submarkets under the financial market has become increasingly close and complex.In order to comprehensively examine the risk-related dynamic characteristics of China's financial system,this paper uses descriptive statistical analysis,correlation analysis,cointegration analysis,Granger causality test,impulse response analysis,and theoretical analysis methods in the capital market under the Chinese financial system.The empirical analysis was conducted on the correlation characteristics between the stock market,fund market,bond markets and the inter-bank loan market in the money market.The purpose of this paper is to reveal the risk-related relationships between the various markets,and the reasons and impacts behind these risk characteristics.This will provide a theoretical basis and reference for investors to make optimal investment decisions and market regulators to improve the financial market risk management system.This article mainly carries out the following four aspects of the study: The first aspect is the descriptive statistical analysis and theoretical analysis of the development status and risk of each submarket under China's financial market and the impact mechanism;the second aspect is to explore the long-term risks of various markets.Equilibrium relationship and short-term fluctuations;the third aspect is to examine the characteristics of risk associated with capital markets and money markets and their causes;the fourth aspect is to examine the characteristics of risk associated with the stock market,fund market,bond markets and their causes.Empirical analysis and theoretical analysis show that: First,all markets under the financial system are not independent markets,but they cannot be independently linked to each other.Market risks have a synergy effect.Risk fluctuations in one market will inevitably affect the risk changes in other markets.Secondly,the bond market plays a role as a “stabilizer” when risk fluctuates.It is mainly due to the investment individuals or institutions as reasons for ra tional people's profit-aversion avoidance and the financial stability function of the government bond market under the bond market;The overall risks of the capital market and the money market exhibit relatively weak correlations,which are mainly due to the lower commonality of investment subjects and the lack of access to financing services.Finally,the stock market and fund market risks are highly correlated,mainly because of the high feedback of investment strategies and stock market information used by fund investment institutions,single fund investment channels and low degree of investment differentiation,and funds.The transaction is affected by the investment behavior and the scale of the transaction,resulting in a common agglomeration effect.Finally,combined with the empirical conclusions,starting from the different risk characteristics of the submarkets and the causes of this phenomenon,they put forward targeted policy recommendations.