Economic Impact Analysis of the Coronavirus, An Alternative Data Perspective

9 Pages Posted: 2 Jun 2020

See all articles by Tony Zhang

Tony Zhang

University of Illinois Urbana Champaign

Jiayue Wang

Beijing International Studies University

Yanjun Li

Crosspoint Academy

Xiyuan Zhang

Tsinghua University

Beibei Li

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management

Danxia Xie

Tsinghua University - Institute of Economics

Date Written: June 2, 2020

Abstract

Alternative data is transforming the investment management process for financial industry, hedge funds, mutual funds, foundations, and pension funds. This paper describes the use of alternative data on the field of finance, particularly illustrating the complex forces driving the stock markets in China and the U.S., through the exploration of the alternative data through the outbreak of COVID-19. The analytic results demonstrate that the subway traffic and commercial housing deal area are positively correlated to the Chinese market in a rather weak level, and that search trends of coronavirus is negatively correlated to the American market with high reliability. The alternative data, which are closely connected with the situation of the coronavirus outbreak, have the ability of predicting where the markets are heading.

Keywords: coronavirus, COIVD-19, alternative data, investment, high frequency data, stock market

JEL Classification: E00, G00, G23, H3, O10

Suggested Citation

Zhang, Qingquan and Wang, Jiayue and Li, Yanjun and Zhang, Xiyuan and Li, Beibei and Xie, Danxia, Economic Impact Analysis of the Coronavirus, An Alternative Data Perspective (June 2, 2020). Available at SSRN: https://ssrn.com/abstract=3617029 or http://dx.doi.org/10.2139/ssrn.3617029

Qingquan Zhang (Contact Author)

University of Illinois Urbana Champaign ( email )

Champaign, IL 61820
United States
6128406736 (Phone)
61820 (Fax)

HOME PAGE: http://https://giesbusiness.illinois.edu/profile/qingquan-zhang

Jiayue Wang

Beijing International Studies University ( email )

Beijing, 100024
China

Yanjun Li

Crosspoint Academy ( email )

66 Zijinghua Rd
Nanjing, Jiangsu 210000
China

Xiyuan Zhang

Tsinghua University ( email )

Beijing, 100084
China

Beibei Li

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management ( email )

Pittsburgh, PA 15213-3890
United States

Danxia Xie

Tsinghua University - Institute of Economics ( email )

MingZhai Building
Beijing, 100084
China

HOME PAGE: http://danxiaxie.com

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