Performance of Volatility Models in Indian Stock Market

Abstract

Oxford dictionary defines volatility as, Liability to change rapidly and unpredictably, newlineespecially for the worse . While the usage of the term volatility in financial markets is very newlinecommon, volatility of variables impacts every facet of life. The well researched and articulated newlinedanger of climate change is clearly the danger of volatility of climate (Temperature, Rainfall, newlineHumidity, Wind etc.). The researchers and scientists have well documented that climate change newlineis a natural process however; the volatility of this change is what can be fearsome for the planet. newlineTo paint the effects of volatility of climate change, a sudden spike in temperature or rainfall newlinecan significantly impact crop production which in turn can have impact on numerous factors newlinein economy. Sudden high humidity in dry regions of Gujarat in India can significantly impact newlinethe cotton production of the region. Volatile wind speeds on the other hand can hamper the newlineviability of wind power plants whereas elongated monsoons can adversely impact the solar newlinepower plants. From as large as climate change, to as small as volatility of speed of a car driving newlineon a highway can cause significant nuisance for the car driving behind it. newline