Abstract
The article is devoted to the study and comparative analysis of the stock quotes dynamics for the world’s leading companies in the IT sector and the entertainment industry. Today, these areas are developing the fastest and most powerful, which attracts the attention of investors around the world. This is due to the rapid development of digital communication technologies, the growth of intellectualization and individualization of goods and services, and so on. These spheres have strong development potential, but the question to how their companies’ stock quotes respond to the impact of such a natural but crisis phenomenon as the COVID-19 pandemic remains open. Based on the nonlinear paradigm of the financial markets dynamics, the paper considers and conducts a comprehensive fractal analysis of the quotations dynamics for six leading companies (Apple Inc., Tesla Inc., Alphabet Inc., The Walt Disney Company, Sony Corporation, Netflix) in this area before and during the COVID-19 pandemic. As a result of the application of the rescaled range analysis (R/S analysis), the presence of the persistence property and long-term memory in the stock quotes dynamics for all companies and its absence in their time series of profitability was confirmed. The application of the method of sequential R/S analysis made it possible to construct fuzzy sets of memory depths for the considered time series and to deepen the analysis of the dynamics due to the quantitative characteristics calculated on their basis. Taking into account the characteristics of memory depth in the dynamics of quotations made it possible to conduct a comparative analysis of the dynamics, both under the influence of the natural crisis situation and in terms of investing in different terms. The peculiarities of the delayed profitability dynamics of quotations for each of the companies are also taken into consideration and compared. The developed recommendations can be used in investment activities in the stock market.
Highlights
Trading in financial instruments on stock exchanges is increasingly becoming a source of income for various investors
For a general understanding of the series dynamics based on the input data, historical volatility is calculated for each selected investment instrument
Let’s move on to the comparative analysis of the stock markets using the methodology of fractal analysis and calculation of memory depth characteristics
Summary
Trading in financial instruments on stock exchanges is increasingly becoming a source of income for various investors. Investors face the problem of choosing financial instruments in which to invest. Effective management of their financial resources – means to get additional benefits in the future. In order to get these benefits, they need to compare financial instruments and choose the most profitable and least risky among them. The issue of analyzing the stock markets dynamics in order to develop practical recommendations for the investor is not new, but it remains relevant and extremely important. Development of investment strategy and awareness of prospects and risks of specific investment instruments is the key to successful investment activities
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