M41 Highway

Data science and software engineering blog


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The influence behind a stocks market using social network analysis

 

Screenshot 2013-11-30 11.14.39

This analysis aims to reveal the influence of enterprises in the Hong Kong economy.
Hong Kong is one of the remarkable financial centers in the world. Hong Kong
economy is highly coherent to the stocks market, in which the Hang Seng Index (HSI)
is the most representative because the 50 constituent companies account for about
60% of capitalization of the Hong Kong Stock Exchange. This study refers to the 50
constituent companies as of 29th November, 2013 published by the Hang Seng
Indexes website (http://www.hsi.com.hk/HSI-Net/HSI-Net). Each public listed
company typically constitutes a several major shareholders who own a significant
portion of shares. These major shareholders influence the strategies of the public
listed company. If an organization plays as a major shareholder in several public listed
companies simultaneously, it creates a sufficient condition to exert her influence in the
stocks market and even the economy. This study will find out are there any super
power to influence the Hong Kong stocks market, and in which degree they exert the
influence.

 

Source code

All the source code for the analysis is available in my github respository (https://github.com/m41highway/sna) . The dataset is merged and cleaned with a piece of Python script using Numpy and Pandas. It will generate a GML format file. The GML format file will then be analyzed using Gephi.

File Purpose
hsindex.csv Dataset
create_network.py Data merge, clean, generate GML
hsi.gml Network file in GML format
EmpiricalNetworkAnalysis.pdf Analysis results

 

 

 

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