An approach for the relationship analysis between social events and the stock market during the pandemic

Abstract

COVID-19 is the latest among the many pandemics in the last few decades in the world, and it has stricken the global economy severely. It has consequently affected the stock market, which affects the economy of the country to a great extent. Some research has managed to analyse the impacts on the stock market during the outbreak; however, few of them have been related to relationship analytics. Here, we proposed a methodology based on pure data analytics, which gathers two types of data, event and stock index in China, to explore their relationship through analysing the stock index’s shift in reacting to pertinent social events, hence revealing insights into how events affect fluctuations in stock indices. The results showed that the relationship does exist in most cases. However, the closeness of the relationship may also be associated with the location of the stock company and other factors such as its geographical, political, and local authority considerations. This study may potentially assist stakeholders in adjusting their investments in the stock market.