The effect of the VIX fear index on the US financial market capitalization through indirect foreign investment

Thesis submitted to the Council of the College of Administration and Economics – University of Karbala, which is part of the requirements for obtaining a master’s degree in financial and banking sciences.

Submitted by 

Ramla Haider Flaih Al-Mousawi

Supervised by

Asst.Pro.Dr. Haider .A. AljanabiAsst.Pro.Dr. Mohammed Faez Hasan

Abstract
In this research, “the effect of the VIX fear index on the general influence of the leading stock market (Wall Street) through indirect foreign investment” was studied. Therefore, the work to embrace it interacts with the concepts, importance, objectives, and types that will be mentioned. The study’s hypotheses can also be tested in terms of The impact and correlation relationships, using (Barron-Kenny), between each of the study’s variations, is based on creating a creation of 520 observations, and dynamic weekly data from 2013 to 2022, and the problem of the study was planned in the dissolution of fear and uncertainty among investors about technology. Play and indirect uses aim to modify the attractiveness, acceptance and desire to invest, which prompted us to study the uncertainty in this, which makes it easier for us to achieve the objectives of the study, including (knowing the index of interest between the VIX index and the general index of the Wall Street market, which clarifies the concept of indirect joint investment And learn about its importance, specifying the specializations, their most prominent functions, classifications, and the parties involved in them. The research was analyzed into four chapters, focusing on the news collection, including the following :

1. There is a statistically significant relationship between the VIX fear index and the general Wall Street market index.

2. There is a significant, statistically significant relationship between the VIX fear index and indirect foreign investment.

3. There is a significant, statistically significant, relationship between indirect foreign investment and the general index of the Wall Street market in the presence of the VIX .

4. There is a significant relationship between the VIX fear index and the general index of the Wall Street market, through indirect foreign investment. This relationship is partial, not total.

The study also made a set of recommendations, including the following:

It is necessary to conduct an analysis of the technical signals of the indicators, and this includes studying chart patterns and technical indicators. It is also necessary to monitor market news and events related to the economy and companies, in addition to the necessity of using quantitative analysis tools, in order to analyze the historical financial data of the market and the necessity of participating in forums and communities. Finance via the Internet, which includes discussing analyzes of markets and indicators, as well as the important opinions and analyzes they contain, through which one can communicate with other traders and investors, where one can benefit from their experiences in order to help improve the study of the impact of the fear index.

The effect of the VIX fear index on the US financial market capitalization through indirect foreign investment

Thesis submitted to the Council of the College of Administration and Economics – University of Karbala, which is part of the requirements for obtaining a master’s degree in financial and banking sciences.

Submitted by 

Ramla Haider Flaih Al-Mousawi

Supervised by

Asst.Pro.Dr. Haider .A. AljanabiAsst.Pro.Dr. Mohammed Faez Hasan

Abstract
In this research, “the effect of the VIX fear index on the general influence of the leading stock market (Wall Street) through indirect foreign investment” was studied. Therefore, the work to embrace it interacts with the concepts, importance, objectives, and types that will be mentioned. The study’s hypotheses can also be tested in terms of The impact and correlation relationships, using (Barron-Kenny), between each of the study’s variations, is based on creating a creation of 520 observations, and dynamic weekly data from 2013 to 2022, and the problem of the study was planned in the dissolution of fear and uncertainty among investors about technology. Play and indirect uses aim to modify the attractiveness, acceptance and desire to invest, which prompted us to study the uncertainty in this, which makes it easier for us to achieve the objectives of the study, including (knowing the index of interest between the VIX index and the general index of the Wall Street market, which clarifies the concept of indirect joint investment And learn about its importance, specifying the specializations, their most prominent functions, classifications, and the parties involved in them. The research was analyzed into four chapters, focusing on the news collection, including the following :

1. There is a statistically significant relationship between the VIX fear index and the general Wall Street market index.

2. There is a significant, statistically significant relationship between the VIX fear index and indirect foreign investment.

3. There is a significant, statistically significant, relationship between indirect foreign investment and the general index of the Wall Street market in the presence of the VIX .

4. There is a significant relationship between the VIX fear index and the general index of the Wall Street market, through indirect foreign investment. This relationship is partial, not total.

The study also made a set of recommendations, including the following:

It is necessary to conduct an analysis of the technical signals of the indicators, and this includes studying chart patterns and technical indicators. It is also necessary to monitor market news and events related to the economy and companies, in addition to the necessity of using quantitative analysis tools, in order to analyze the historical financial data of the market and the necessity of participating in forums and communities. Finance via the Internet, which includes discussing analyzes of markets and indicators, as well as the important opinions and analyzes they contain, through which one can communicate with other traders and investors, where one can benefit from their experiences in order to help improve the study of the impact of the fear index.