The paper presents analysis on renewable energy companies in stock exchange by applying the minimum spanning trees approach.
The daily closure prices of 70 stocks of renewable energy companies from 13.10.2010 to 04.03.2015 are investigated.
Result showed that; First Solar Inc., General Cable Corporation and Trina Solar are the most important within the network.
Moreover; these stocks play a significant role in renewable energy development in terms of market capitals.
The renewable energy industry has the important role in overall growth in the worldwide economy in the last two decades. This paper constitutes a first analysis on renewable energy companies in stock exchange by used the minimum spanning trees (MSTs) approach. In this study, the daily closure prices data of 70 stocks of renewable energy companies during the time period from 13th October 2010 to 4th March 2015 are investigated. In stock market analysis, the interrelations among stocks are represented in terms of Pearson correlation coefficient (PCC). This is the standard practice to construct the stock network. With the precondition of time series are synchronous, the similarity among the stocks is quantified by the PCC between the logarithmic exchange rate returns of i and j stocks. In order to analyze the topological properties of MST, three major centrality measures are used, namely; degree, closeness and betweenness centralities. Result of this paper indicated that; First Solar Inc., General Cable Corporation and Trina Solar are more important within the network, moreover; we found that; these stocks play a significant role in renewable energy development in terms of market capitals.
- Renewable energy;
- Stock exchange;
- Minimum spanning trees (MSTs);
- Financial market
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