Risk analysis of the shares of the financial sector of the Mexican stock exchange during the COVID-19 pandemic and he Russia-Ukraine conflict
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During the health pandemic, the Mexican financial authorities implemented several measures to help bank debtors and avoid an excessive increase in delinquencies. Insurers shelled out large sums of money to pay for treatment of policyholders who fell ill with COVID-19. These circumstances during the health crisis impacted the profits of companies in the financial sector and, in turn, the prices of their shares and, consequently, the risk of their share prices. The outbreak of the war between Russia and Ukraine has effected the world economy, also impacting the financial markets. This paper shows the risk analysis of the shares of the companies that make up the financial sector of the Mexican Stock Exchange according to measures of the risk of suffering losses (downside risk) and the consequent loss of value (drawdown) cause due to falling prices. The daily closing prices of the shares of 20 companies that make up the financial sector of the Mexican Stock Exchange were used, with which four indicators were calculated: the standard deviation, the semi deviation, the maximum loss (drawdown) and the Value at Risk (VaR).
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During the health pandemic, the Mexican financial authorities implemented several measures to help bank debtors and avoid an excessive increase in delinquencies. Insurers shelled out large sums of money to pay for treatment of policyholders who fell ill with COVID-19. These circumstances during the health crisis impacted the profits of companies in the financial sector and, in turn, the prices of their shares and, consequently, the risk of their share prices. The outbreak of the war between Russia and Ukraine has effected the world economy, also impacting the financial markets. This paper shows the risk analysis of the shares of the companies that make up the financial sector of the Mexican Stock Exchange according to measures of the risk of suffering losses (downside risk) and the consequent loss of value (drawdown) cause due to falling prices. The daily closing prices of the shares of 20 companies that make up the financial sector of the Mexican Stock Exchange were used, with which four indicators were calculated: the standard deviation, the semi deviation, the maximum loss (drawdown) and the Value at Risk (VaR).