Calculation method and principle Analysis of Market Index
The market index is an important reference index for investors to pay attention to the dynamics of the stock market.AxieinfinitydaoWhich reflects the overall performance of the whole market It is very important for investors to understand the calculation method and principle of the market index. This article will introduce in detail the calculation method of the market index and the principle of rise and fall.
I. Classification of the market index
The market index is usually divided into composite index and component index. The composite index covers all stocks in the market, such as the Shanghai Composite Index, while the component index selects some stocks in the market as samples, such as the CSI 300 Index.
Second, the calculation method of the market index
The main methods for calculating the market index are as follows:
oneAxieinfinitydao. Market value weighting method
The market value weighting method is the most common method to calculate the market index, which weighs the market value of each component stock according to a certain proportion, so as to get the value of the index. The specific calculation formula is as follows:
Market index = (∑ (market capitalization / total market capitalization) x base index value)
Among them, the total market capitalization is the sum of the market capitalization of all constituent stocks, and the value of the base period index is a benchmark value set at the time of index compilation.
two。 Price weighting method
The price weighting method is to weigh the price of each component stock according to a certain proportion, so as to get the value of the index. The specific calculation formula is as follows:
Market index = (∑ component share price / total equity) × base index value
3. Equal weight method
The equal weight method gives the same weight to each component stock, and the market value and price are not taken into account when calculating the index. The specific calculation formula is as follows:
Market index = (price of ∑ constituent shares) / number of constituent stocks x base index value
Third, the rise and fall principle of the market index.
The rise and fall of the market index is mainly affected by the following factors:
1. Price change of constituent shares
The rise and fall of the price of constituent stocks has a direct impact on the changes of the market index. When stocks rise as a whole, the market index rises, and vice versa.
two。 Adjustment of constituent stocks
The adjustment of constituent stocks will affect the calculation base of the market index. For example, when a stock is included in a constituent stock, its market capitalization is counted as the total market capitalization, thus affecting the value of the market index.
3. Market sentiment
Market sentiment will affect investors' demand for stocks, thus affecting the price of constituent stocks. When sentiment improves, investor demand for stocks increases, driving up the broader index, and vice versa.
Fourth, how to pay attention to the market index
Investors can follow the market index in the following ways:
1. Financial news and websites
Follow the financial news and websites to keep abreast of the latest developments in the market index and market analysis.
two。 Professional software
Use professional financial software to check the market and trend of the market index in real time.
3. Social media
Follow the financial bigwigs and investment institutions on social media for in-depth interpretation and investment advice on the market index.
Through the above introduction, I believe that everyone has a more in-depth understanding of the calculation method of the market index and the principle of rise and fall. It is hoped that investors can use what they have learned to make wise investment decisions.