Abstract

Since the COVID-19 pandemic explosion in January 2020, the progress of numerous companies has been affected and, naturally, stocks have seen a correction as a result. In this article, the overall impact of the COVID-19 pandemic' will be analyzed under assessing the impact on Disney stock. In order to analyze the change in variation between the COVID-19 pandemic and the fluctuation in the price of Disney stock, the initial intercept was between the closing price of Disney stock and the total number of new infections recorded at the beginning of the COVID-19 pandemic breakout. These data were used to calculate the daily number of new infections and the return on Disney stock. The data were first tested for stationarity using the ADF Test and then a VAR model and an ARMA-GARCH model were developed for these data. This study showed that the effect of COVID-19 on Disney stock was not significant. At the end of the article, two types of investor psychology are analyzed and some references are given to investors.

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