Abstract
Background: This article studies the relationship between the COVID-19 epidemic, public sentiment, and the volatility of infectious disease equities from the perspective of the United States. We use weekly data from January 3, 2020 to March 7, 2021. This provides a sufficient dataset for empirical analysis. Granger causality test results prove the two-way relationship between the fluctuation of infectious disease equities and confirmed cases. In addition, confirmed cases will cause the public to search for COVID-19 tests, and COVID-19 tests will also cause fluctuations in infectious disease equities, but there is no reverse correlation. The results of this research are useful to investors and policy makers. Investors can use the number of confirmed cases to predict the volatility of infectious disease equities. Similarly, policy makers can use the intervention of retrieved information to stabilize public sentiment and equity market fluctuations, and integrate a variety of information to make more scientific judgments on the trends of the epidemic.
Highlights
Since the initial outbreak of COVID-19, this global epidemic has spread rapidly
This study empirically examines the relationship between the volatility of infectious disease equities, public sentiment, and the COVID-19 epidemic from the perspective of the United States
The research results show that the confirmed cases in the United States are positively correlated with COVID-19 TEST
Summary
Since the initial outbreak of COVID-19, this global epidemic has spread rapidly. According to data from Johns Hopkins Coronavirus Resource Center on March 23, 2021, the global number of Coronavirus cases has reached 123.6 million, of which the United States accounts for 29.9 million. Previous outbreaks of infectious diseases such as SARS and MERS-CoV did not have such a strong impact on the equity market as the COVID-19 pandemic This shows that in response to the current coronavirus epidemic, government restrictions on business activities and stay-at-home policies have had a direct negative impact on the service-oriented economy. Researchers can use Google Trends data to investigate people’s search needs for coronavirus information around the world, and can choose five keywords for comparative analysis each time. This data is especially useful for studying seasonal infectious diseases, mental health conditions, and other diseases. This is of great significance to investors and decision makers
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