The correlation of geomagnetic field to VN-Index return
Abstract: This study examines the impact of geomagnetic dynamics on the VN-Index return. Using the VN-Index daily and geomagnetic data for the period from 28 July 2000 until 31 December 2014, the author applies a linear regression model and logit regression model. With 90% confidence level, the results show that the average rate of return of the VN-Index in the days of geomagnetic storms is higher than normal days by 0.065% to 0.072%. The Probability for the VN-Index to increase in the days of geomagnetic storms is 1.65 times higher than it is on normal days. The study also recommends investors to some investment criteria based on geomagnetic dynamics for VN-Index.
geomagnetic storms, stock market, neuroscience economics, emotion in financial decisions.