Time-Varying Volatility Modeling of Stock Returns During COVID-19: The Nigeria Empirical Evidence

Abstract

This study models time varying volatility in the Nigerian stock exchange (NSE) investigating whether it has been affected during the Covid-19 periods. We examined the persistence of volatility and the presence of leverage effects in Nigerian equity market before and during the period of Covid-19. It wad found that there is GARCH effects in the stock market before and during the Covid-19 periods. However volatility was pooling and spiky more during the Covid-19 giving the verdict that the market has become highly unpredictable  during this period. In addition, leverage effects are more pronounced during the pandemic peril.

Keywords: Volatility, conditional volatility, GARCH, Covid-19 crisis

Overall Rating

0

5 Star
(0)
4 Star
(0)
3 Star
(0)
2 Star
(0)
1 Star
(0)
APA

Toby, A. (2021). Time-Varying Volatility Modeling of Stock Returns During COVID-19: The Nigeria Empirical Evidence. Afribary. Retrieved from https://afribary.com/works/modelingtime-varying-volatility-of-returns

MLA 8th

Toby, Adolphus "Time-Varying Volatility Modeling of Stock Returns During COVID-19: The Nigeria Empirical Evidence" Afribary. Afribary, 18 Jun. 2021, https://afribary.com/works/modelingtime-varying-volatility-of-returns. Accessed 22 Nov. 2024.

MLA7

Toby, Adolphus . "Time-Varying Volatility Modeling of Stock Returns During COVID-19: The Nigeria Empirical Evidence". Afribary, Afribary, 18 Jun. 2021. Web. 22 Nov. 2024. < https://afribary.com/works/modelingtime-varying-volatility-of-returns >.

Chicago

Toby, Adolphus . "Time-Varying Volatility Modeling of Stock Returns During COVID-19: The Nigeria Empirical Evidence" Afribary (2021). Accessed November 22, 2024. https://afribary.com/works/modelingtime-varying-volatility-of-returns