Analysis of Hardware Industry During COVID-19 Based on Fama-French Five Factor Model

COVID-19 has a huge impact on the global economy, especially the hardware industry, which is the cornerstone for the prosperity of each country. Based on the Fama-French Five-Factor Model and multiple linear regression, this paper analyzes the difference of the hardware industry before and after the outbreak of the epidemic. The data in this paper are selected from Kenneth R. French's Web database and are obtained by the founder of Fama-French model based on relevant information of the U.S. stock market. The hardware industry data from 2019.7.1 to 2020.10.30 are adopted daily from 49 Industry Portfolios and divided equally into two groups for comparison. The coefficients are obtained by multiple linear regression. The results indicate that the outbreak of COVID-19 has not only a negative influence on the hardware industry but also some certain stimulative effects. Particularly, it concludes that the whole hardware market after the epidemic conforms to the CAPM model, leaving the four factors added recently insignificant.