Does COVID-19 Affect the Financial Market?

19 Pages Posted: 20 Apr 2020

See all articles by Hui-Pei Cheng

Hui-Pei Cheng

Soochow University, Taiwan

Kuang-Chieh Yen

Soochow University, Taiwan

Date Written: April 17, 2020

Abstract

This paper studies the relationship between the COVID-19, an infectious disease, and different financial assets. We find that the change in the newly confirmed cases per thousand people in US rather than that in China can positively predict the S&P 500 return. Moreover, we find that the change in the newly disease confirmed cases per thousand persons in US is negatively correlated with the change in the T-Bill spread. However, we observe that the change of China disease newly confirmed cases per thousand people can positively or negatively affect the change in the T-Bill spread. Furthermore, the change in the newly confirmed cases per thousand people cannot predict the Bitcoin return whatever of US or China.

Keywords: COVID-19, S&P 500 index, Bitcoin, T-Bill, Return

JEL Classification: C22, G15, D81

Suggested Citation

Cheng, Hui-Pei and Yen, Kuang-Chieh, Does COVID-19 Affect the Financial Market? (April 17, 2020). Available at SSRN: https://ssrn.com/abstract=3578263 or http://dx.doi.org/10.2139/ssrn.3578263

Hui-Pei Cheng

Soochow University, Taiwan ( email )

No.56, Section 1, Kueiyang Street
Taipei, Taipei 100
Taiwan

Kuang-Chieh Yen (Contact Author)

Soochow University, Taiwan ( email )

56. kuei-yang St., Sec. 1
Taipei, Taiwan 10048
Taiwan

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
225
Abstract Views
1,622
rank
171,265
PlumX Metrics