Impact of the Russian-Ukrainian Conflict on Chinese Textile and Garment Enterprises: Stock Selection and Timing Judgment under Treynor & Mazuy and Henriksson & Merton Evaluation methods

Abstract

This paper studies the impact of the outbreak of the Russian-Ukrainian conflict on Chinese textile and garment enterprises. This paper mainly uses Jensen model, Treynor & Mazuy evaluation method and Henriksson & Merton evaluation method to judge the Stock selection and timing capabilities of investment target, supplemented by Sharpe ratio, Treynor index and other indicators. The stock price data is collected from Investing.com and calculated into the indicators above by the author. The performance of the stocks during the period is evaluated through the indicators and the evaluation methods. The conclusion includes the result of the evaluation and the discussion about reliability of the methods in different factors. It shows that most companies in this industry were negatively affected by the conflict, while a small number of companies that were not negatively affected showed positive development. And found the advantages of Treynor & Mazuy evaluation method and Henriksson & Merton evaluation method in stock selection and timing judgment respectively. The conclusion improves the recognition of the Russian-Ukrainian conflict in another aspect and explain the advantages of the two methods in specific conditions.