Analysis of the Dependence of Stock Risk Based on Copula Theory

摘要

The rapid development of the economy emphasizes the importance of financial risk. Financial risk analysis can help people understand finance more deeply and reduce the loss of profits. This paper is about the dependence on stocks, which is very important for analyzing the dependence structure of stock market and the portfolio risk of investment market. The experimental data are the daily closing price data of shares of Midea Group and Gree Electric. Copula theory is used to fit the daily return data of Gree Electric and Midea Group. By establishing the correlation structure model of the stock market, the daily return data of Gree Electric and Midea Group are better simulated.