Correlation between Covid–19 and equity markets

Abstract

The equity markets are sensitive to political, social or economic developments. In this case, we focus on a health one, Covid-19. It will be exposed the level at which share prices were exposed , and how it correlates with the spread of the virus . The Pearson coefficient will indicate the C -19 correlation with the return and volatility figures, in the world’s main financial indices.. Due to decision-making by Central Banks and governments, the impact was amortised, and indices had upward returns in the period computed : March 2020- March 2021.There were also different yields according to the sector they represented, with the technology being the least affected by the crisis.