Volatility Prediction of China's New Energy Stock Market Based on OVX jumps

Abstract

In recent years, with the development and improvement of the new energy industry, the trend of its transition from supplementary energy to alternative and mainstream energy has been apparent. This paper focuses on the results of OVX jumps in predicting the volatility of China's new energy stock market, and explores the degree of improvement of the model's prediction under different time periods. Firstly, we provide a preliminary understanding of volatility prediction through the background of the era and literature review, then analyze the results of volatility prediction of China's new energy stock market based on OVX jumps, and finally put forward relevant countermeasure suggestions. The findings of this paper can help traders to grasp the changes in the domestic new energy market and understand its risk profile. At the same time, to a certain extent, it also enriches the related research on volatility, which is of great significance for grasping the direction of the stock market.