E ISSN: 2583-049X

International Journal of Advanced Multidisciplinary Research and Studies

Volume 3, Issue 3, 2023

Mathematical Overview of the Volatility of Stock Market with Special Reference to the Closing Prices of Bandhan Bank, Vodafone-Idea and GMR Airport

Author(s): Pratyakshi Sarma, Bapan Kalita


Price of stock market is volatile. This leads to the difficulty to find the growth rate of stock price in the market. Here, we collected prices of three stocks viz., Bandhan Bank, Vodafone-Idea and GMR Airport for a period of 28 days right from 3 April 2023 to 11 May 2023. First, we prepare a mathematical model on this data and check the stability of the model. Then we develop a data-driven second-degree parabola model on this data and verified the goodness of fit of the model. A drift-diffusion model is fitted on the collected data and the same is compared with the data obtained from the fitted model by using a Lorenz curve. Price of Bandhan Bank shows most deviation whereas the other two prices are almost similar. The price of Vodafone Idea is most consistent.

Keywords: Volatility, Stock Market, Mathematical Modelling, Data-Driven Model, Drift-Diffusion Model

Pages: 1062-1070

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