Proceedings of the 2nd International Academic Conference on Blockchain, Information Technology and Smart Finance (ICBIS 2023)

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A Study of the Impact of Covid-19 in Medical-Related Industries Using Fama-French Five-Factor Method

Authors
Jinyan Chen1, *
1Zhejiang Gongshang University, No. 18, Xuezheng Street, Xiasha Higher Education Park, Hangzhou, 310000, China
*Corresponding author. Email: 2002060236@pop.zjgsu.edu.cn
Corresponding Author
Jinyan Chen
Available Online 10 August 2023.
DOI
10.2991/978-94-6463-198-2_143How to use a DOI?
Keywords
Finance; Equities; Covid-19; Fama-French Model
Abstract

Since the outbreak of Covid-19, the stock market has suffered from the unstable lash. This article focuses on the impact of Covid-19 on the stock market of the Healthcare industry, Medical Equipment industry, and Pharmaceutical Products industry. 172 trading days in each part of Covid-19 are selected to make regression analysis and the Fama-French Five-factor model is adopted to measure the sensitivity of stock returns. The emphasis of the article is to discuss the changes in five factors caused by Covid-19 and propose a reasonable stock-picking strategy. Caused by Covid-19, the coefficients and significance levels in three industries fluctuate. The results indicate that in different industries, investors should attach importance to different types of stock portfolios. A hedging strategy is suitable in every medical-related industry. Meanwhile, investors should pay attention to the portfolios of different investment rates in the Healthcare industry, the profitability in the Medical Equipment industry, and the stocks which have different book value and market value in the Pharmaceutical Products industry.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2nd International Academic Conference on Blockchain, Information Technology and Smart Finance (ICBIS 2023)
Series
Atlantis Highlights in Computer Sciences
Publication Date
10 August 2023
ISBN
978-94-6463-198-2
ISSN
2589-4900
DOI
10.2991/978-94-6463-198-2_143How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Jinyan Chen
PY  - 2023
DA  - 2023/08/10
TI  - A Study of the Impact of Covid-19 in Medical-Related Industries Using Fama-French Five-Factor Method
BT  - Proceedings of the 2nd International Academic Conference on Blockchain, Information Technology and Smart Finance (ICBIS 2023)
PB  - Atlantis Press
SP  - 1370
EP  - 1377
SN  - 2589-4900
UR  - https://doi.org/10.2991/978-94-6463-198-2_143
DO  - 10.2991/978-94-6463-198-2_143
ID  - Chen2023
ER  -