Research on the Quantitative Causal Transmission of Stock Price Fluctuations of Listed Companies in the Rare Earth Industry Chain

Abstract

Rare earth is an important strategic mineral resource, and the study of the causes of stock price fluctuations of rare earth listed companies and their transmission can enable all parties in the market to have a clearer understanding of current market relationships. In this study, the quantitative causality analysis model and complex network method are used to analyze each link within the rare earth industry chain and the relationship between regions from the quantitative causality of stock price fluctuations among listed companies in the rare earth industry. The main transmission paths of fluctuations in each link between companies are also given. It is found that the quantitative causal relationship between the price fluctuations of rare earth industry stocks has positive causation, negative causation, and unclear causation, and the dominant causal relationship is mostly positive causation. The positive causal relationship between enterprises in the same region is significantly greater than that between enterprises in different regions. The negative causal relationship and unclear causal relationship between enterprises in different regions are significantly greater than the negative causal relationship and unclear causal relationship between enterprises in the same region.