Analysis of Differences and Correlation between Different Industries based on Stock Price Information

Abstract

Stock price fluctuation is the focus of people's life. Based on stock price information, this paper focuses on China's oil industry and its downstream industries (such as garment and textile industry, automobile industry and decoration and building materials industry) and makes a statistical analysis on their correlation. After the basic statistical description of the average performance of ten leading stocks in each industry in the past ten years, the factor analysis, linear regression analysis and weighted least square methods are adopted, and finally the conclusion is drawn: there is a strong correlation between the four selected industries, among which the correlation between petroleum energy and clothing and textile is the strongest; Perhaps due to the rise of new energy vehicles, the epidemic and other reasons, although the automobile industry and the decoration and building materials industry have always been able to better fit and have a strong correlation, but in recent years, the two and the oil industry to a certain extent. This result can provide reference for investors' investment direction and industry policy direction to some extent, and can also be used as a method and model to explore how other stock price information reflects industry information.