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Optimizing Stock Market Returns during Global Pandemic Using Regression in the Context of Indian Stock Market

Author

Listed:
  • Pradip Debnath

    (Department of Applied Science and Humanities, Assam University, Cachar, Assam, Silchar 788011, India)

  • Hari Mohan Srivastava

    (Department of Mathematics and Statistics, University of Victoria, Victoria, BC V8W 3R4, Canada
    Department of Medical Research, China Medical University Hospital, China Medical University, Taichung 40402, Taiwan
    Department of Mathematics and Informatics, AzerbaiJanuary University, 71 Jeyhun Hajibeyli Street, Baku AZ1007, Azerbaijan
    Section of Mathematics, International Telematic University Uninettuno, I-00186 Rome, Italy)

Abstract

Stock markets around the world experienced a massive collapse during the first wave of COVID-19. Roughly in the month of January 2021, the second wave of COVID-19 struck in India, reaching its peak in May, and by the end of May, the active cases started to decline. A third wave is again predicted by the end of 2021, and as such, the COVID-19 pandemic seems to have become a periodic phenomenon over the last couple of years. Therefore, the study of the behavior of the stock market as well as that of the investors becomes very interesting and crucial in this highly volatile and vulnerable market trend. Motivated by these facts, in the present paper, the researcher develops a model for portfolio management, using curve-fitting techniques and shows that this model can encounter the market volatility efficiently in the context of the Indian stock market. The portfolio is designed based on data taken from the National Stock Exchange (NSE), India, during 1 January 2020 to 31 December 2020. The performance of the portfolio in real-life situation during 1 January 2021 to 21 May 2021 is examined, assuming investments are made according to the proposed model.

Suggested Citation

  • Pradip Debnath & Hari Mohan Srivastava, 2021. "Optimizing Stock Market Returns during Global Pandemic Using Regression in the Context of Indian Stock Market," JRFM, MDPI, vol. 14(8), pages 1-10, August.
    • Handle: RePEc:gam:jjrfmx:v:14:y:2021:i:8:p:386-:d:617238
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    References listed on IDEAS

    as
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