Title:Comparative Analysis of the Stock Quotes Dynamics for IT-Sector and the Entertainment Industry Companies Based on the Characteristics of Memory Depth
The article is devoted to the study and comparative analysis of the stock quotes dynamics for the world's leading companies in the IT sector and the entertainment industry. Today, these areas are developing the fastest and most powerful, which attracts the attention of investors around the world. This is due to the rapid development of digital communication technologies, the growth of intellectualization and individualization of goods and services, and so on. These spheres have strong development potential, but the question to how their companies' stock quotes respond to the impact of such a natural but crisis phenomenon as the COVID19 pandemic remains open. Based on the nonlinear paradigm of the financial markets dynamics, the paper considers and conducts a comprehensive fractal analysis of the quotations dynamics for six leading companies (Apple Inc., Tesla Inc., Alphabet Inc., The Walt Disney Comp., Sony Corp., Netflix) in this area before and during the COVID-19 pandemic. As a result of the application of the rescaled range analysis (R\S-analysis), the presence of the persistence property and long-term memory in the stock quotes dynamics for all companies and its absence in their time series of profitability was confirmed. The application of the method of sequential R\S-analysis made it possible to construct fuzzy sets of memory depths for the considered time series and to deepen the analysis of the dynamics due to the quantitative characteristics calculated on their basis. Taking into account the characteristics of memory depth in the dynamics of quotations made it possible to conduct a comparative analysis of the dynamics, both under the influence of the natural crisis situation and in terms of investing in different terms. The peculiarities of the delayed profitability dynamics of quotations for each of the companies are also taken into consideration and compared. The developed recommendations can be used in investment activities in the stock market.
Comparative Analysis of the Stock Quotes Dynamics for IT-Sector and the Entertainment Industry Companies Based on the Characteristics of Memory Depth