Comparing the behaviour of Malaysian financial sector stocks of pre and during the coronavirus outbreak using correlation

Bahari, Nurun Najwa and Muhd Azzimi, Nur Syaza and Ismail, Munira and Bahaludin, Hafizah and Abdul Razak, Fatimah (2024) Comparing the behaviour of Malaysian financial sector stocks of pre and during the coronavirus outbreak using correlation. In: 5th International Conference on Mathematical Sciences (ICMS5), 16th - 17th May 2023, Bangi, Selangor, Malaysia.

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Abstract

The severe and protracted effects of the COVID-19 epidemic pose a significant threat to the economy and the stability of the financial system. It destabilizes the economy and impacts the stock market. We can use the correlation between the stocks to explore the behavior of the stock market, particularly for 50 companies in the financial sector before (2019) and during COVID-19 (2020). The relationship of stocks correlation can be described by the price movement of the stocks. A positive correlation indicate that prices of the stocks are moving in tandem. Meanwhile, negative correlations imply that the price of the stocks are moving in opposite directions. In 2019 before COVID-19 hits, the heatmap of the correlations between the stocks show more negative correlations. Much stronger positive correlations were found in 2020 during COVID-19. It is also found that the banks listed in the financial sector in Bursa Malaysia have a strong positive correlation up to 0.6 during COVID-19. The banks are really important to the financial sector as a capital buffer and financial intermediary specifically during the financial crisis. Hopefully, the results of this study can help investors better understand the impact of COVID-19 on the financial sector in Malaysia.

Item Type:	Proceeding Paper (Plenary Papers)
Additional Information:	9007/114676
Subjects:	Q Science > QA Mathematics
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Science Kulliyyah of Science > Department of Computational and Theoretical Sciences
Depositing User:	Hafizah Bahaludin
Date Deposited:	26 Sep 2024 16:00
Last Modified:	27 Sep 2024 10:14
URI:	http://irep.iium.edu.my/id/eprint/114676

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