Smart Analysis of Volatility Visualization as a Tool of Financial and Tourism Risk Management

Ani Stoykova () and Mariya Paskaleva
Additional contact information
Ani Stoykova: South-West University “Neofit Rilski”
Mariya Paskaleva: South-West University “Neofit Rilski”

A chapter in Culture and Tourism in a Smart, Globalized, and Sustainable World, 2021, pp 359-370 from Springer

Abstract: Abstract Volatility is important for option traders because it affects options prices. Generally, higher volatility makes options more valuable, and vice versa. During periods of high volatility, financial markets are relatively more efficient. Volatility falls when markets rise and rise as markets fall. This paper focuses on examining the dynamics of European capital markets, S&P 500, GEPU, and VIX. Also, we observe the performance of S&P 500, Stoxx 600, and Stoxx Europe 600 Travel and Leisure price index. The analyzed period is 2003–2016. The results show that studied stock indices tend to move synchronously during the examined period. We register a high level of volatility for the period 2007–2011. The first major bottom of VIX is in December 2007. We can conclude that there is a strong correlation between VIX, GEPU, and S&P500 measuring “investor risk appetite”. GEPU fluctuates around consistently high levels since mid-2011 until the beginning of 2013. The dynamics of GEPU and VIX are not synchronized for the period 2013–2016. In the crisis period, travel and leisure stock performance lower because of increasing global uncertainty.

Keywords: VIX; GEPU; Capital markets volatility; Financial crisis; Tourism industry (search for similar items in EconPapers)
JEL-codes: G01 G14 G15 G32 L83 (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-030-72469-6_24

Ordering information: This item can be ordered from
http://www.springer.com/9783030724696

DOI: 10.1007/978-3-030-72469-6_24

Access Statistics for this chapter

More chapters in Springer Proceedings in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().