RESEARCH AND ANALYSIS OF TIME SERIES OF FINANCIAL INDICATORS BY WAVELET ANALYSIS

Keywords: stock market, investments, wavelet analysis, Daubechies wavelet, stock indices, forecasting stock indicators

Abstract

The article is devoted to topical issues of determining the development patterns of the domestic stock market. The stock market is one of the main indicators of eco-nomic development. It creates an efficient investment system in which resources are allocated according to the needs of households and enterprises. Market research helps to identify those periods that are most relevant to a State’s financial system. In the difficult conditions of the development of the Ukrainian market, it has not been able to become an effective mechanism for carrying out the turnover of financial assets. Investor confidence in the market is very low, as the risk of capital loss in non-transparent trade is very high. This significantly hampers the development of the economy and also undermines the confidence of international society, as exchange trading is an indicator of the full development of the State. As a result of the lack of an efficient way of allocating resources, there is an irrational accumulation of resources, an increase in the shadow sector and an outflow of capital abroad, which leads to the impoverishment of the population. This, in turn, affects trade, as the quantity of resources decreases and the market is shaken. The article analyses trends in the development of the market on the basis of wavelet transformations, and identifies the regularities that are central to its functioning. Wavelet - Analysis allows to follow the development of the market, to tie it to historical or economic events, thus there is a possibility of preventing critical situations in the market and in the economy as a whole. In further research, taking into account all possible factors that may influence the change of trade, and analysis of market trends, it is possible to develop a qualitative assessment of the Ukrainian stock market and attract all possibilities for its stable activity and development. The forecast provided not only an indication of when trade peaked, but also of how those peaks were reflected in the social situation of the population, which reduced the level of contributions and which situations were favourable. This will help to develop intervention strategies that can improve the well-being of the population and contribute to the development of the entire country.

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Published
2021-03-30
How to Cite
Bratushka, S., & Rozhkova, M. (2021). RESEARCH AND ANALYSIS OF TIME SERIES OF FINANCIAL INDICATORS BY WAVELET ANALYSIS. Economy and Society, (25). https://doi.org/10.32782/2524-0072/2021-25-50
Section
ECONOMICS