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The purpose of this paper is to study how the market correlation changes in Chinese stock market and how the market correlation affects stock returns.

The authors first examine the relationship between the market correlation and the market return. Then, the authors run formal multiple regressions to see whether correlation risk is priced in security returns.

The authors find that market correlation increases when the market index falls down. Though market correlation risk is partly influenced by macroeconomic shocks, volatility risk, liquidity risk and higher moment risk, market correlation contains unique information that measures the benefit investors gain from diversification strategies. The market correlation risk is negatively priced. This conclusion remains valid even if the authors have considered the influence of other risk factors and the impact of conditional information.

Subjected to the limited history of the Chinese stock market, the authors cannot use more accurate and specific empirical methodology to fulfill the empirical research. And this renders further study.

This research provides empirical evidence in a new data sample and it sheds lights on correlation strategies for institutional investors in China.

Due to disequilibrium between supply and demand in the option market, the option market‐maker is under exposure to certain risks because of their net option positions. This paper aims to pay attention to whether the risk award affects the option price and the shape of implied volatility in the market‐maker system.

The paper first eliminates the part of implied volatility explained by underlying asset's stochastic volatility‐jump price process, and second sorts out market investors' net demand data from TAIEX Options tick by tick deal data and then finally considers three market maker's risks – unhedgeable risk, capital constrain risk and asymmetric information risk, and how they affect implied volatility's level and slope.

Through the research in the TAIEX Option market, the paper finds that, under unhedgeable risk, net demand pressure has a significant impact on implied volatility. Especially, unhedgeable risk due to underlying asset's stochastic volatility has the best explanation for implied volatility level, and unhedgeable risk due to underlying asset's jump can explain implied volatility slope to some extent. Capital constrain risk and asymmetric information risk have an insignificant impact on implied volatility.

The findings in this study suggest that the risk award affects the option price and the shape of implied volatility in the market‐maker system and different risks have different effects on the level and slope of option implied volatility.

This paper finds the influence factors of the option price in the market‐maker system. It's useful for China's financial government and investors to learn the price tendency and regular pattern in the future China option market.

This is the first time that a net demand pressure based option pricing model is used, which is derived by Garleanu, Pedersen and Poteshman, to study the TAIEX Options' implied volatility. And the paper improves the methods eliminating the part of implied volatility explained by underlying asset's stochastic volatility‐jump price process.

Unconventional machining processes, particularly ultrasonic vibration cutting (UVC), can overcome such technical bottlenecks. However, the precise mechanism through which UVC affects the in-service functional performance of advanced aerospace materials remains obscure. This limits their industrial application and requires a deeper understanding.

The surface integrity and in-service functional performance of advanced aerospace materials are important guarantees for safety and stability in the aerospace industry. For advanced aerospace materials, which are difficult-to-machine, conventional machining processes cannot meet the requirements of high in-service functional performance owing to rapid tool wear, low processing efficiency and high cutting forces and temperatures in the cutting area during machining.

To address this literature gap, this study is focused on the quantitative evaluation of the in-service functional performance (fatigue performance, wear resistance and corrosion resistance) of advanced aerospace materials. First, the characteristics and usage background of advanced aerospace materials are elaborated in detail. Second, the improved effect of UVC on in-service functional performance is summarized. We have also explored the unique advantages of UVC during the processing of advanced aerospace materials. Finally, in response to some of the limitations of UVC, future development directions are proposed, including improvements in ultrasound systems, upgrades in ultrasound processing objects and theoretical breakthroughs in in-service functional performance.

This study provides insights into the optimization of machining processes to improve the in-service functional performance of advanced aviation materials, particularly the use of UVC and its unique process advantages.

This research explores the finite element modeling of the crater and material removal rate (MRR) in micro-electrical discharge machining (micro-EDM) with and without vibration of the workpiece. The application of workpiece vibration in the micro-EDM process improved flushing efficiency and enhanced material removal rate (MRR).

In this work, the two-dimensional axisymmetric finite element method (FEM) has been developed to predict the shape of the crater with and without vibration. The temperature distribution on the workpiece surface with and without vibration has been obtained in the form of the contour plot.

The MRR obtained from the numerical model revealed that there was an enhancement in MRR in micro-EDM with vibration as compared to without vibration. The effect of process parameters on MRR in micro-EDM with and without is also presented in this work.

In this work, the two-dimensional axisymmetric FEM model has been developed to predict the shape of the crater with and without vibration.