Related Experiment Video
Updated: Oct 16, 2025

Author Spotlight: Advancements in Multiplex Detection of Respiratory Viruses
Published on: November 10, 2023
Stock market volatility and the COVID-19 reproductive number
Fernando Díaz1, Pablo A Henríquez1, Diego Winkelried2
1School of Business and Economics and Center for Empirical Research in Businesses (CIEN), Universidad Diego Portales, Santiago, Chile.
Abstract:
The media has prominently featured the totemic reproductive number in its COVID-19 coverage despite being an imperfect measure of the degree of infectivity of the virus. As such, it conveys information to the public regarding the state of the pandemic that affects market sentiment. We analyze how news about affects the volatility in stock markets worldwide and find that when is greater than one, which means the spread of the disease should soar, it has a positive and significant effect on volatility. Our results hold after controlling for government interventions and several robustness checks.
More Related Videos
Related Concept Videos
Residuals and Least-Squares Property
If the observed data point lies above the line, the residual is positive, and the line underestimates the actual data value for y. If the observed data point lies below the line, the residual is negative, and the line overestimates the actual data value for y.
The process of fitting the best-fit...
Correlation
Two variables, for example, a and b, are said to be positively correlated if both variables move in the same direction. In other words, a positive correlation exists between two variables, a and b, if:
Relative Risk
Pareto Chart
The Pareto chart is named after the Italian economist Vilfredo Pareto, who described the Pareto...
Coefficient of Correlation
If you suspect a linear relationship between x and y, then r can measure how strong the linear relationship is.
What the VALUE of r tells us:
The value of r is always between –1 and +1: –1 ≤ r ≤ 1.
The size of the correlation r indicates the...
Coefficient of Variation
The coefficient of variation is a practical statistical tool in finance. It allows investors to assess the volatility or...

