Proceedings of the 2nd International Conference on Information Economy, Data Modeling and Cloud Computing, ICIDC 2023, June 2–4, 2023, Nanchang, China

Research Article

Research on the Influence of Turnover Rate on Stock Investment Portfolio Returns

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  • @INPROCEEDINGS{10.4108/eai.2-6-2023.2334624,
        author={Ranran  Lv},
        title={Research on the Influence of Turnover Rate on Stock Investment Portfolio Returns},
        proceedings={Proceedings of the 2nd International Conference on Information Economy, Data Modeling and Cloud Computing, ICIDC 2023, June 2--4, 2023, Nanchang, China},
        publisher={EAI},
        proceedings_a={ICIDC},
        year={2023},
        month={8},
        keywords={turnover rate; stock returns; investment portfolio},
        doi={10.4108/eai.2-6-2023.2334624}
    }
    
  • Ranran Lv
    Year: 2023
    Research on the Influence of Turnover Rate on Stock Investment Portfolio Returns
    ICIDC
    EAI
    DOI: 10.4108/eai.2-6-2023.2334624
Ranran Lv1,*
  • 1: Beijing Jiaotong University
*Contact email: 1071915083@qq.com

Abstract

Turnover rate refers to the frequency of stock turnover within a certain period of time in the market. It is one of the indicators reflecting the strength of stock liquidity. The higher the turnover rate, the more active the stock trading is, the higher the probability of stock price rise in the later stage, good liquidity, strong liquidity, and investors are more willing to purchase such stocks; Stocks with low turnover rates generally have poor liquidity and a high probability of later decline, making them easy to enter and difficult to exit. Investors are not optimistic about these stocks. This article attempts to explore new stock selection methods based on theoretical research, starting from the stock selection strategy in quantitative investment trading strategies. A-share listed companies in China from 2000 to 2015 are selected as research samples, and these stocks are selected to enter the stock pool to construct investment portfolios. The returns of each investment portfolio are obtained, and the results are visualized to illustrate the relationship between the turnover rate and the return rate of stock investment portfolios.