Research on the Value of Stock Investment based on Factor Analysis and Cluster Analysis

Research Article
Open access

Research on the Value of Stock Investment based on Factor Analysis and Cluster Analysis

Yihang Yuan 1* , Yucheng Hou 2 , Zongyang Zhang 3
  • 1 Macau University of Science and Technology    
  • 2 Beijing Normal University and Saint Mary’s University    
  • 3 Beijing Normal University at Zhuhai    
  • *corresponding author 1909853db011072@student.must.edu.mo
Published on 13 September 2023 | https://doi.org/10.54254/2754-1169/10/20230468
AEMPS Vol.10
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-47-8
ISBN (Online): 978-1-915371-48-5

Abstract

This paper mainly explores the important practical significance of stock investment factor analysis. The factor analysis method has been applied in economics, sociology, management, and other research fields, its main purpose is to describe the basic hidden variables hidden in a group of measured variables, which cannot be directly measured. This paper takes 62 listed companies of the North Exchange as examples for analysis. The formation mechanism of a stock price is very complex, which needs to be analyzed by many factors. Several different factors are analyzed by IMO and Bartlett tests and the orthogonal rotation method. Finally, the price factor, trade factor, debt factor, earnings factor and growth factor are determined. Factor scores are then calculated and compared for each stock. Descriptive analysis was used to get the final conclusion. Through the use of factor analysis, investors can make quantitative analysis of each index and extract the factors affecting the stock, so as to make a relatively objective evaluation of the listed company's stock, and provide an evaluation criterion for investors.

Keywords:

stock investment factor analysis, IMO and Bartlett tests, orthogonal rotation method, descriptive analysis

Yuan,Y.;Hou,Y.;Zhang,Z. (2023). Research on the Value of Stock Investment based on Factor Analysis and Cluster Analysis. Advances in Economics, Management and Political Sciences,10,210-219.
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References

[1]. Zhu, G. J.: Promote Economic Transformation and Upgrading and Serve the High-quality Development of Small and Medium-sized Enterprises. In: China Academic Journal Electronic Publishing House, (2022).

[2]. Zhang, J. B.: New Channels for Small and Medium-sized Enterprises to be Listed. In: Technology China (1), (2022).

[3]. Cao, L.: The Anniversary of the Beijing Stock Exchange. In: China Business News, pp. Edition A08, (2022).

[4]. Li, C.: Hsu Investment Decision Making Using a Combined Factor Analysis and Entropy-Based Topsis Model. In: Journal of Business Economics and Management 14(3), 448–466 (2013).

[5]. Tian, H., Wang, W.R.: Research on Applicability of Stock Valuation Model. In: China Academic Journal Electronic Publishing House, (2022).

[6]. Wang, Y.: Analysis of Stock Investment Value -- Taking Tianyu Stock as an Example. In: China Academic Journal Electronic Publishing House, pp. No.3x, (2022).

[7]. Wu, J.: Analysis of Stock Investment Value of Listed Banks Based on Factor Analysis and Cluster Analysis. In: China Academic Journal Electronic Publishing House, (2022).

[8]. Yang, S. Y., Guo, H. M., Li, J. G.: CNN-GRUA-FC Stock Price Forecast Model Based on Multi-Factor Analysis. In: Journal of Advanced Computational Intelligence and Intelligent Informatics 26(4), (2022).

[9]. Gu, B. T., Zhu, J. M., Huang T. L.: Research on Investment Value of Innovation Board Based on Factor Analysis and Cluster Analysis. In: Journal of Jilin Agricultural Science and Technology University 29(3), (2022).

[10]. Huang, H.: Research on the Value of Chinese Banking Stock Investment Based on Factor Analysis. In: China Academic Journal Electronic Publishing House, (2022).

[11]. Han, F. C.: Comprehensive Evaluation Method of Initial Factor Analysis and its Application. In: Statistics and Decision Making, pp. No. 2x, (2022).

Cite this article

Yuan,Y.;Hou,Y.;Zhang,Z. (2023). Research on the Value of Stock Investment based on Factor Analysis and Cluster Analysis. Advances in Economics, Management and Political Sciences,10,210-219.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 2nd International Conference on Business and Policy Studies

ISBN：978-1-915371-47-8(Print) / 978-1-915371-48-5(Online)
Editor：Javier Cifuentes-Faura, Canh Thien Dang
Conference website: https://2023.confbps.org/
Conference date: 26 February 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.10
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Zhu, G. J.: Promote Economic Transformation and Upgrading and Serve the High-quality Development of Small and Medium-sized Enterprises. In: China Academic Journal Electronic Publishing House, (2022).

[2]. Zhang, J. B.: New Channels for Small and Medium-sized Enterprises to be Listed. In: Technology China (1), (2022).

[3]. Cao, L.: The Anniversary of the Beijing Stock Exchange. In: China Business News, pp. Edition A08, (2022).

[4]. Li, C.: Hsu Investment Decision Making Using a Combined Factor Analysis and Entropy-Based Topsis Model. In: Journal of Business Economics and Management 14(3), 448–466 (2013).

[5]. Tian, H., Wang, W.R.: Research on Applicability of Stock Valuation Model. In: China Academic Journal Electronic Publishing House, (2022).

[6]. Wang, Y.: Analysis of Stock Investment Value -- Taking Tianyu Stock as an Example. In: China Academic Journal Electronic Publishing House, pp. No.3x, (2022).

[7]. Wu, J.: Analysis of Stock Investment Value of Listed Banks Based on Factor Analysis and Cluster Analysis. In: China Academic Journal Electronic Publishing House, (2022).

[8]. Yang, S. Y., Guo, H. M., Li, J. G.: CNN-GRUA-FC Stock Price Forecast Model Based on Multi-Factor Analysis. In: Journal of Advanced Computational Intelligence and Intelligent Informatics 26(4), (2022).

[9]. Gu, B. T., Zhu, J. M., Huang T. L.: Research on Investment Value of Innovation Board Based on Factor Analysis and Cluster Analysis. In: Journal of Jilin Agricultural Science and Technology University 29(3), (2022).

[10]. Huang, H.: Research on the Value of Chinese Banking Stock Investment Based on Factor Analysis. In: China Academic Journal Electronic Publishing House, (2022).

[11]. Han, F. C.: Comprehensive Evaluation Method of Initial Factor Analysis and its Application. In: Statistics and Decision Making, pp. No. 2x, (2022).

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