Analysis of the European stock market's advance response time to COVID-19 based on Pearson correlation Coefficient

Abstract

The epidemic of COVID-19 has swept the world, which has had a very serious impact on the social economy. The stock market, as a barometer of the economy, has also been hit. This paper selects the stock indexes of Britain, Germany and France as the research object to explore the influence of COVID-19 on the stock index. The results show that the European stock market will fluctuate several days before the epidemic, and the volatility of the stock market is an early warning for the outbreak of COVID-19. The specific days of early warning for COVID-19 in stock markets of various countries are not quite the same. In Britain, the number of early warning days is 14 days, and the number of daily new confirmed cases of COVID-19 is strongly related to the country's stock market index. France's early warning days are 7 days, and the number of daily newly diagnosed COVID-19 is weakly related to the country's stock market index. Germany's early warning days are 5 days, and the daily new number of COVID-19 's confirmed cases is strongly related to the country's stock market index.