Analyzing Variations in Global Stock Markets

摘要

Fluctuations in financial markets have always been the subject of concern for academicians and practioners. Wide price fluctuations are a daily occurrence on the world's stock markets as investors react to economic, business, and political events. The soaring stock prices around the globe have taken valuations of stocks to unreachable heights. The present study is an attempt to analyse the volatility present in stock markets of Asia Pacific region and other developed countries. Data for the time period 2005-2013 has been collected to analyse the same. Coefficient of variation, T-test and GARCH (1,1) model has been used to investigate the variations in the stock markets. The results support the fact that there is no significant difference in volatility between stock exchanges within specific except between Germany stock market and US stock market. GARCH (1,1) provides that US stock market is the most volatile followed by India.