Study on the Influence of Stock Trading Volume of Traditional Chinese Medicine by Multiple Linear Regression

Abstract

With the development of economic, more and more people start investing in stocks. The key of investment is choosing a stock which performs better, and there are many factors will affect the stock’s performance. And nowadays, Chinese medicine is most popular in the markets because of the rapid development of China’s medical industry and the society’s attention to the development of traditional Chinese medicine. Therefore, this article studied the factors on the trading volume of Chinese medicine stocks through the multi-choice linear regression method and multicollinearity test. The article collected relevant data from 2005 to 2020. From the analysis, it points out that there are three factors will affect the performance of Chinese medicine stocks. The factors are transaction volume of Shanghai and Shenzhen300 shares, output of traditional Chinese medicine, disposable income of urban residents. Among these, transaction volume of Shanghai and Shenzhen300 shares and disposable income of urban residents have positive relationship with trading volume of Chinese medicine stocks, and output of traditional Chinese medicine has negative relationship.