An Analysis of the Volatility of US Defense Stocks Using Bollinger Bands

The existence of a relationship between stock market fluctuations and the economy of the state, country or region may be interrelated to each other in one way or the other. This paper is an effort to understand the fluctuations or volatility in US defense stocks given the growth of the US defense se...

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Bibliographic Details
Published inThe ICFAI journal of financial risk management Vol. 19; no. 4; pp. 5 - 14
Main Author Bhattacharjee, Sandeep
Format Journal Article
LanguageEnglish
Published Hyderabad IUP Publications 01.12.2022
Subjects
Defense industry
Defense spending
Dividend policy
Earnings per share
Efficient markets
Foreign investment
Geopolitics
Government revenue
Growth models
Institutional investments
Liberalization
Macroeconomics
Productivity
Securities markets
Stock exchanges
Stock prices
Volatility
United States > US
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Summary:The existence of a relationship between stock market fluctuations and the economy of the state, country or region may be interrelated to each other in one way or the other. This paper is an effort to understand the fluctuations or volatility in US defense stocks given the growth of the US defense sector in recent times. Five major companies were included in the study: Lockheed Martin Group, Northrop Grumman Corp., Raytheon Technologies, Axon Enterprise Inc., and HEICO Corp. The study was conducted for a period of approximately one year, i.e., from December 30, 2021, to December 30, 2022 (253 days of stock trading). Volatility testing of these stocks revealed that the stocks were less volatile and more stable, which further strengthened the US defense sector.
ISSN:0972-916X