Investor Sentiment and Volatility Prediction of Currencies and Commodities During the COVID-19 Pandemic

Hoang, Thi Hong Van; Syed, Qasim Raza

doi:10.46557/001c.18642

Cited by 27 publications

(15 citation statements)

References 22 publications

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“…The findings might not be generalized for every uncertain situation, as the Covid-19 is an event that has not occurred before (Caggiano et al 2020 ). This high uncertainty and fear would have led to a high level of bias among the investors (Hoang and Syed 2021 ).…”

Section: Conclusion and Discussionmentioning

confidence: 99%

Covid-19 and heuristic biases: evidence from India

et al. 2021

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Stock markets worldwide have witnessed high volatility during the year 2020 owing to the eruption of Covid-19. Due to the world’s unprecedented economic challenges, this study could potentially guide financial advisors and individual investors in dealing with pandemics. An association between investors’ perception toward the intensity of Covid-19 and heuristic biases is analyzed using the responses of 290 stock investors of National Capital Region (NCR), India. The data are validated through Cronbach’s alpha, and the model fit is analyzed using EFA. Confirmatory factor analysis (CFA) is employed to investigate the relationship between Covid-19 and heuristic biases. Covid-19 does not have any influence on the overconfidence of investors. A significant positive relationship is found between Covid-19 and the remaining three heuristics, i.e., availability, anchoring, and representativeness. The present study analyzes the association between Covid-19 and specific investors’ bias only and should not be interpreted for causality. The study has the potential to guide investors in understanding the errors they are making while investing during the pandemic and the ways to deal with them. The study could provide insights to the financial advisors in understanding their customers. The implications of the study may include inputs of the errors committed by them during the pandemic. Despite the fact that an enormous amount of literature exists in the field of investors’ sentiment, a scarcity of literature is available that measures the relationship between heuristic biases and the perceived impact of the pandemic. The current study attempts to fill this gap in the literature.

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Section: Conclusion and Discussionmentioning

confidence: 99%

Covid-19 and heuristic biases: evidence from India

et al. 2021

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“…The questionnaire will be administered to 50% of the entire population. The questionnaire entails the main question that provided the data for the verification of the hypothesis 12 . The collected data will be analyzed using the linear regression equation.…”

Section: Questionnairementioning

confidence: 99%

The Impact of COVID 19 In Digital Currencies Focused in Western Balkan Societies

Shahini¹,

Skuraj²,

Sallaku³

et al. 2021

Indian Journal of Forensic Medicine & Toxicology

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Virtual communities' emergence and innovative technologies bring up new types of accounting and transaction methods. These methods go beyond the existing economics knowledge and current legal solutions. Virtual societies develop and share their payment medium for goods and services exchange. The use of cryptocurrency has been enhanced during the COVID -19 era due to the health guidelines to minimize the virus's spread. Cryptocurrencies bridge the loopholes left by the traditional currency in sorting crises like the Corona Virus pandemic. However, cryptocurrency brings up legal controversies that users are exposed to economic and legal risks.

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“…Researchers have already explored the impact of the COVID-19 pandemic on the economy (e.g., Liu et al 2020;Padhan and Prabheesh 2021;Yagi and Managi 2021), policy responses (Gungoraydinoglu et al 2021;Makin and Layton 2021;Zaremba et al 2020), and society and policies in general (Tisdell 2020;Park and Chung 2021). With respect to financial markets, Bing and Ma (2021) categorize the large and growing body of literature across four groups, namely the impacts of COVID-19 on (a) firm and industry performances (e.g., Gu et al 2020;Qin et al 2020;Xiong et al 2020;Xu et al 2020); (b) stock return volatility (e.g., Al-Awadhi et al 2020;Dai et al 2021;Liu et al 2021); (c) fear sentiments (e.g., Baig et al 2020;Hoang and Syed 2021;Ortmann et al 2020); and (d) risk contagion (e.g., Corbet et al 2020Corbet et al , 2021Jiang et al 2020).…”

Section: Introductionmentioning

confidence: 99%

S&P 500 Index Price Spillovers around the COVID-19 Market Meltdown

Lento

Gradojević

2021

JRFM

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This paper explores price spillover effects around the COVID-19 pandemic market meltdown between the S&P 500 index, five other financial markets, and the VIX. Frequency domain causalities are estimated for the January–May 2020 time period on a high-frequency data set at five-minute intervals. The results reveal that price movements in the S&P 500 generally caused price movements in other financial markets before the market meltdown; however, a large number of bi-directional causalities emerged during the market meltdown. During the market recovery, S&P 500 price movements were more likely to be caused by other financial markets’ price movements. The VIX, exchange rate, and gold returns had the most prominent influence on the S&P 500 returns in the market recovery.

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Investor Sentiment and Volatility Prediction of Currencies and Commodities During the COVID-19 Pandemic

Cited by 27 publications

References 22 publications

Covid-19 and heuristic biases: evidence from India

Covid-19 and heuristic biases: evidence from India

The Impact of COVID 19 In Digital Currencies Focused in Western Balkan Societies

S&P 500 Index Price Spillovers around the COVID-19 Market Meltdown

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