Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
Series Vol. 49 , 01 December 2023
Open
Access | Article
Time Series Analysis of Climate Change & Its Relationship with Stock Price
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Abstract
Climate change has recently become a critical global concern, and its potential impact on financial markets has attracted significant attention. The study investigates the relationship between rising temperatures and the S&P 500 index, aiming to understand the implications of temperature changes on stock market performance. This research applies the Autoregressive Integrated Moving Average (ARIMA) model to analyze the relationship, using the linear and dynamic regression models to forecast the S&P 500 according to the ARIMA-fitted values of temperature change in the future. The findings from the dynamic regression model indicate that the rising temperature positively impacts the S&P 500, while the linear regression models show no correlation between these two. The study's findings support investors and policymakers in gaining a more comprehensive insight into the relationship and applying it to business practices. Furthermore, the study offers guidance to develop risk mitigation strategies within the financial sector.
Keywords
stock market, climate change, global warming, S&P 500, ARIMA
References
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
- ISBN (Print)
- 978-1-83558-145-2
- ISBN (Online)
- 978-1-83558-146-9
- Published Date
- 01 December 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/49/20230483
- Copyright
- 01 December 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited