Does Change of Shanghai Composite Index Associate with the Stock?
Chun-Nan Chen, PhD; Chung-Lien Pan

Abstract
Using Shanghai Composite index as an example, this paper solves the association problem of stock and index using monthly data from 2011 to 2015. To find the association has two problems. The first problem is that probability statistical methods are required huge data to solve large sample multiple data uncertainties. The other problem is that the volume of stock data is so large that it affects our ability to use it. To solve two problems, we constructed a database to reduce the size of stock data and used with that technical theory of gray system developed by Deng that can provide a framework to measure the association with stock and index. These findings have implications for investors that have enough reference to make investment decision.

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