Topological structural analysis of China's new energy stock market: a multi-dimensional data network perspective

Abstract

In this paper, we apply an RV coefficient network to investigate the topological structure of China’s new energy stock market via daily prices of 60 component stocks of CSI (China Stock Index) New Energy Index spanning the period January 4, 2012 to March 29, 2019. Compared with the Pearson correlation coefficient, RV coefficient can better reflect the similarity between stocks from the perspective of multi-dimensional data. The empirical result indicates that (1) the scale-free characteristics of China’s new energy stock market are not significant; (2) the new energy storage is the leading sub-sector of the new energy sector and the new energy interactive equipment plays a connecting role between renewable energy production and new energy storage; (3) the most influential stock in the network is Group DMEGC Magnetics Co., Ltd., Xiamen Tungsten Co., Ltd. and GEM Co., Ltd. play an important role in the network connection. These findings are of great significance to understand the interaction between Chinese new energy stocks and the pricing mechanism of stocks. The authority should pay more attention to the new energy storage industry. Investor’s portfolios can be optimized according to the influence assessment of stocks and sub-sectors. First published online 26 May 2020

Keywords

• new energy stock market
• rv coefficient network
• topological properties
• minimum spanning tree