What is the Market Index Method: The method of calculating a stock market index

The market index method is a method of calculating the "market index" based on the actual factors of each regional market, so as to determine the allocation amount. Common regional market factors include resident population, wage income, regional retail sales, etc.

Calculation: The market index method is an ideal decomposition method, specifically, there are single factor method and combination factor method.

1. Single-factor method.

It is a method of finding its market index based on a market factor. For example, if the demographic factor is selected, the market index is the proportion of people in different regions, and it is used as a quota index; If the photocopier related to the copy paper is selected as the market factor, the market index is the proportion of the number of photocopiers in different regions, which is used as the quota index.

2. Combined factor method.

It uses any combination of two or more market factors to find the method of finding the market index, as shown in the table

An example of the combined factor method.

Specifically, there are three methods: the ranking method, the scoring method and the composition ratio method.

a Subordinate method:

Alignment calculation table.

The basic steps of the subordination method:

a.According to the actual number of each element, the serial number is arranged in large and small rows;

b.Find the sum of each sequential value for each region;

c.Find the desired percentage for each region using the following formula;

Expected percentage of region = [Number of features (number of regions + 1) Total number of elements in the region in order] + [Number of features (number of regions + 1)] 100%.

d.The percentage of the regions will be calculated on a total basis;

e.The calculated percentages for each region are used as a quota index to break down the target sales.

Example: The expected percentage in region A is 75%.

The expected percentage for Region B is 42%;

The expected percentage for Region C is 33%;

Then: the quota index of region A is 50%; [75÷（75+42+33）]×100%=50%

The quota index for Region B is 28%;

The quota index for Region C is 22 per cent.

b Grading method:

Scoring method calculation table.

Basic steps of the rubric:

a.find the average of each element;

b.Find the percentage of each regional feature in the average feature;

c.Calculate the sum of the percentages of each element in different regions, and then sum the total values of each region;

d.The resulting value is the quota index when the percentage value of the total value of each region is compared with the percentage value of the total.

For example, the quota index of region A is;

c Composition ratio.

The basic steps of the composition ratio:

a.Find the composition ratio of different regions of each element;

b.The value obtained in the previous step is multiplied by the weights of each factor;

c.The values obtained in the second step are aggregated by region, and the percentage of the total accounted for by different regions is calculated as the market index.

For example, if the weights of population, wages, and retail sales are ., respectively3,a Region:

Then: the quota index of region A is;

The quota index for region b is;

The quota index for region c is:

To calculate the ** index, three factors should be considered: first, sampling, that is, a small number of representative constituent stocks are selected from the multitude; the second is weighted, which is a weighted average of unit price or total value, or an unweighted average; The third is the calculation procedure, which calculates the arithmetic mean, the geometric mean, or takes into account the ** and the total value.

The meaning of an index is a reference number compiled by an exchange or financial services institution that indicates changes in the market.

By looking at the index, we will have a clear understanding of the current ups and downs of each ** ticket market.

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2. What is the use of the ** index?

According to the content of the above article, we can know that the index generally selects some ** in the market, and these ** are very representative, so through the index, we can quickly understand the overall rise and fall of the market, then we can see how hot the market is, and even what the future trend is. Specifically, you can click the link below to get professional reports and learn the ideas of analysis: the latest industry research reports are free to share.