An analysis of the relationship of the three major financial markets during the period 1994-1999
Executive Summary. This study focused on the extent of the relationship of the different stock price indices and their corresponding trading volume. The indices used were the PHISIX, CI-Index, Oil Index, and the Mining Index. It sought to determine the relationship between these two variables, as we...
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| Main Authors: | , , , |
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| Format: | text |
| Language: | English |
| Published: |
Animo Repository
1999
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| Online Access: | https://animorepository.dlsu.edu.ph/etd_bachelors/12082 |
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| Institution: | De La Salle University |
| Language: | English |
| Summary: | Executive Summary. This study focused on the extent of the relationship of the different stock price indices and their corresponding trading volume. The indices used were the PHISIX, CI-Index, Oil Index, and the Mining Index. It sought to determine the relationship between these two variables, as well as figure out if their relationship is significant or not. It likewise assessed the acceptability of the model recommended by the proponents.
The null hypothesis used in this study was that there is no relationship between the stock price indices and their corresponding trading volume. On the other hand, the alternative hypothesis was that there was a relationship between the two variables.
The study contained 1,247 data points for each index and a 95% confidence interval. To determine the relationship of the variables and the significance of these relationships, the t-test, z-test and the coefficient of correlation were used. Values were derived using Microsoft Excel '97 and Statsoft Statistica '95. The acceptability of the model was verified using the f-test.
Findings showed that the Phisix, Oil-Index, Mining-Index, and their corresponding trading volumes were positively correlated while a negative correlation existed between the CI-Index and its trading volume. The tests also revealed that a significant relationship existed between the variables except for that of the CI-sector. The results of the study indeed established that a relationship existed between and among the variables. However the degree of their relationship varied across specific indices. |
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