VOLATILITY ANALYSIS USING MACHINE LEARNING FOR IMPROVED INVESTMENT DECISIONS

Abstract

Understanding and managing volatility in the stock market is crucial for investors and traders seeking to optimize risk management and decision-making. This study examines the volatility of 10 companies within the NIFTY50 index over a two-year period (2021–2023). Leveraging the GARCH model, the research predicts volatility for each company and ranks them accordingly. Results reveal that Infosys and Bajaj Finance exhibit the highest levels of volatility, with conditional variances of 3.077 and 2.896, respectively. Additionally, the study conducts a detailed analysis of monthly volatility rankings for the years 2021 and 2022, providing valuable insights for market participants navigating fluctuating market conditions.