Research on the Dynamic Correlation Between COVID-19 Pandemic and Boeing Stock

DOI

10.2991/aebmr.k.220405.364How to use a DOI?

Keywords

COVID-19 Pandemic; Boeing’s Stock; Dynamic Correlation

Abstract

Over the past two years, the COVID-19 outbreak has affected industries and changed People’s Daily lives. Due to social distancing and airlines ‘ shutdown, businesses sensitive to the Covid-19 pandemic, such as aerospace industry players, have been devastated. This leads us to be interested in how the COVID-19 pandemic is changing the stock price dynamics of companies in the sector, such as Boeing. Then, we came to explore the relationship between the evolvement of Covid-19 cases and changes in Boeing’s stock price so that businesses in this industry can react more promptly to future pandemic events and take some precaution measures. To explore, we used time series models, including ARMAX and GARCH models, and regression analysis, including the VAR model, to explore how U.S. and World Covid-19 cases have impacted Boeing’s stock price returns. As a result of our modeling analysis, we find out that the impact of both the U.S. and world COVID-19 outbreak on Boeing’s log stock return over a long-term scope is fairly weak, and the impact of COVID-19 on stock returns is more of a temporary shock than a long-term impact. Moreover, Boeing’s stock return is positively impacted by one standard deviation unit of the number of new additions to COVID-19 cases in the United States. Over time, the impact of the number of new COVID-19 topics in the US on Boeing’s stock returns tends to zero.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Ziang Shi
AU  - Jinyan Wang
AU  - Shuwen Yang
PY  - 2022
DA  - 2022/04/29
TI  - Research on the Dynamic Correlation Between COVID-19 Pandemic and Boeing Stock
BT  - Proceedings of the 2022 7th International Conference on Social Sciences and Economic Development (ICSSED 2022)
PB  - Atlantis Press
SP  - 2156
EP  - 2162
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220405.364
DO  - 10.2991/aebmr.k.220405.364
ID  - Shi2022
ER  -