Geopolitics and Market Risk : Do geopolitical events in the region influence the volatility of stocks traded in Helsinki?
Lambert, Jean (2025)
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202505059089
https://urn.fi/URN:NBN:fi:amk-202505059089
Tiivistelmä
The purpose of that study was to identify whether geopolitical risk is a factor of risk in financial markets.
The research has been conducted using quantitative study. The risk of the market was measured using the volatility of the Helsinki leading index OMXH25 while geopolitical risk was measured using the GPR index consolidated by Caldara & Iacoviello for Finland, Russia and Ukraine. The data was collected for a period going from April 2013 to February 2025.
The result revealed that the linear relationship between GPR for those countries and OMXH25’s volatility was visible only in the case of Ukrainian GPR.
The author recommends further investigation with different financial data, GPR and index and on various time periods.
The research has been conducted using quantitative study. The risk of the market was measured using the volatility of the Helsinki leading index OMXH25 while geopolitical risk was measured using the GPR index consolidated by Caldara & Iacoviello for Finland, Russia and Ukraine. The data was collected for a period going from April 2013 to February 2025.
The result revealed that the linear relationship between GPR for those countries and OMXH25’s volatility was visible only in the case of Ukrainian GPR.
The author recommends further investigation with different financial data, GPR and index and on various time periods.