Research on the Factors Affecting Stock Price Volatility

Abstract

Under the influence of the Covid-19, the economies of all countries were affected to varying degrees, particularly on the domestic stock market. Consequently, equity price volatility will be researched, primarily by studying factors affecting volatility. This paper is mainly divided into four aspects of research, first, through the monthly return standard deviation, distribution skewness, and other basic indicators are analyzed, emphasizing the importance of technical indicators to research stock price volatility. Thereafter, it is found that the emergence of social unrest events has a positive impact on the volatility of stock returns. Finally, it is concluded that macroeconomic conditions (GDP and industrial productivity) and international aspects (oil price volatility and financialization of commodities) positively correlate with equity price volatility. Volatility is influenced by numerous factors and cannot be discussed in isolation. Therefore, although we discussed four factors, there are hidden factors that were not considered.