BEHIND STOCK PRICE MOVEMENT: STRUCTURAL AND CYCLICAL EXPLANATORY FACTORS IN FINANCIAL MARKET

Rezumat

Volatility is central for asset pricing, risk management and asset allocation as well. the volatility of financial assets must be measured to build efficient portfolios. It is recognized among financial economists that volatility varies over time with ups and downs that affect investments. Volatility is identified as measure of risk and it is important to understand it insofar that allows to manage the inherent risk associated with investing. Trying to get a perception of the market close to reality, we have to deal with a broad range of factors that impact the price of securities from companies (stocks) and other issuers in financial market. This paper seeks to better understand how this volatility can be determined following the effect of structural explanatory factors and cyclical explanatory factors.