Analysis of the Effect of Covid-19 on Chemistry Industry Based on U.S. Stock Market

DOI

10.2991/assehr.k.211020.336How to use a DOI?

Keywords

Fama-French model, COVID-19, Chemistry industry

Abstract

In 2020, the whole world has encountered the Black Swan incident COVID-19 in economy, medical industry, and chemistry industry. In order to investigate the effects on chemistry industry, we use the Fama-French model to calculate and evaluate the sensitivities of industries before and after the pandemic. Based on our results, the interception factor became significant, and Mkt factor tended to be less sensitive than it was before the pandemic. Besides, SMB was significant both before and after the incident, i.e., investors were optimistic about chemistry industry all the time. In addition, the HML was both higher than zero, which indicated the book value remained high. As for RMW, it was less significant after the pandemic, indicating that the average return has basically no difference comparing to those companies with low profitability. CMA factor was redundant, i.e., the average return on portfolio investment has changed basically nothing. These results provide the basis for the investment decision of chemical industry.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Xi Chen
AU  - Shan Zhang
AU  - Zexin Nie
PY  - 2021
DA  - 2021/10/21
TI  - Analysis of the Effect of Covid-19 on Chemistry Industry Based on U.S. Stock Market
BT  - Proceedings of the 2021 International Conference on Public Relations and Social Sciences (ICPRSS 2021)
PB  - Atlantis Press
SP  - 1243
EP  - 1248
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.211020.336
DO  - 10.2991/assehr.k.211020.336
ID  - Chen2021
ER  -