Browsing by Subject "VIX index"

During recent years there has been more uncertainty globally, stock market volatility spikes and both economical and political uncertainty. Moreover, how has the roundwood price volatility reacted to this uncertainty or is it diversified from global uncertainty. This master’s thesis studies this question. This master’s thesis examinates the impact of global uncertainty on the roundwood price volatility in Finland. The more specified objective of the research is to examine if there have been more volatile periods in the Finnish roundwood market regarding price volatility and if global market volatility and political and economical uncertainty affects the volatility of roundwood prices in Finland. Furthermore, the research question is: Does global market volatility and political and economical uncertainty affect the volatility of roundwood prices in Finland. The research was executed by first using Analysis of Variance to compare if the roundwood prices have been more volatile in different time periods. This analysis was followed by regression analysis to investigate if global stock market volatility and global political and economical uncertainty had an impact on it. The results indicated that there have been significant differences in volatility terms of the roundwood prices in Finland, with roundwood prices being more volatile between 2017 - mid 2023. The regression results, however, did not show significant relationships between roundwood volatility and global uncertainty but, did show significant results that are suggesting that the roundwood price volatility is diversified from the stock market volatility. Decision makers can benefit from understanding the link between global stock markets and fluctuations in roundwood prices, highlighting the need for risk management strategies. Future research should focus on the impact of local uncertainty factors on raw wood prices in Finland since the market has been volatile but is not affected by global uncertainty according to this study.