1
$\begingroup$

Assume we have a day where stock price falls many standard deviations of the mean (e.g >3) . How could we test, in terms of time-series, if this negative shock is permanent or deminishes in the long run(e.g 1 year).

One example, would be testing the impact of a physical disaster on a stock, component of a sensitive to these phenomenon sector.

$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.