Abstract
This study points to increase global monetary integration as a result of rising volatility spillovers. As a result, analyzing volatility spillovers for international areas that expand and improve through the usage of inventory returns and oil prices is critical. The EGARCH model is used to explore the Volatility Spillovers of oil agencies in five ASEAN international areas during the Covid-19 Pandemic. To assess the interrelationships of the ASEAN stock index as well as the path of volatility, data were acquired from five global sites with very large volatility spillovers, namely Indonesia, Malaysia, Singapore, Thailand, and Vietnam. The findings show that this search is critical for ASEAN traders as well as Filipinos. Furthermore, because accurate forecasting of volatility spillover in global equity markets is required to reduce portfolio risk, this search has a substantial and viable significance.
Highlights
In the long run, a strong and environmentally friendly stock market refers to an anomaly that calls into question the correctness of the environmentally friendly market theory
When investors follow in the footsteps of others, they form a herd. This behavior occurs when rational traders interact in a widespread manner, preventing them from searching for market-critical data that is influenced by volatility spillovers (Gontijo et al, 2020)
The scale of the Covid-19 outbreak is expected to close between 2020 and 2021, according to this empirical study, which looks at the sharia index of six worldwide online sites in ASEAN
Summary
A strong and environmentally friendly stock market refers to an anomaly that calls into question the correctness of the environmentally friendly market theory. When investors follow in the footsteps of others, they form a herd. This behavior occurs when rational traders interact in a widespread manner, preventing them from searching for market-critical data that is influenced by volatility spillovers (Gontijo et al, 2020). The more favored the capital market rivalry is, the lower the advertising cost and the higher the buy price, resulting in narrower margins. Over the last 30 years, international financial integration has accelerated considerably, allowing for higher-quality cross-border capital mobility as well as more volatile spillovers (Darinda and Permana, 2019). Growing international financial integration, according to (Dean et al, 2010), has resulted in a strengthening of the relationship between stock market returns and global market volatility. The volatility of the Sharia Spillovers Index for the Covid-19 Pandemic’s journey through ASEAN appears to be under-explored in recent research
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