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Nostradamus: Weathering Worth

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Listed:
  • Alapan Chaudhuri
  • Zeeshan Ahmed
  • Ashwin Rao
  • Shivansh Subramanian
  • Shreyas Pradhan
  • Abhishek Mittal

Abstract

Nostradamus, inspired by the French astrologer and reputed seer, is a detailed study exploring relations between environmental factors and changes in the stock market. In this paper, we analyze associative correlation and causation between environmental elements (including natural disasters, climate and weather conditions) and stock prices, using historical stock market data, historical climate data, and various climate indicators such as carbon dioxide emissions. We have conducted our study based on the US financial market, global climate trends, and daily weather records to demonstrate a significant relationship between climate and stock price fluctuation. Our analysis covers both short-term and long-term rises and dips in company stock performances. Lastly, we take four natural disasters as a case study to observe the effect they have on people's emotional state and their influence on the stock market.

Suggested Citation

  • Alapan Chaudhuri & Zeeshan Ahmed & Ashwin Rao & Shivansh Subramanian & Shreyas Pradhan & Abhishek Mittal, 2022. "Nostradamus: Weathering Worth," Papers 2212.05933, arXiv.org, revised Jan 2023.
    • Handle: RePEc:arx:papers:2212.05933
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    References listed on IDEAS

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    1. David Hirshleifer & Tyler Shumway, 2003. "Good Day Sunshine: Stock Returns and the Weather," Journal of Finance, American Finance Association, vol. 58(3), pages 1009-1032, June.
    2. Yi-Hsien Wang & Chin-Tsai Lin & Jung Lin, 2012. "Does weather impact the stock market? Empirical evidence in Taiwan," Quality & Quantity: International Journal of Methodology, Springer, vol. 46(2), pages 695-703, February.
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