Market Volatility

Market volatility, the tendency of prices to fluctuate unexpectedly, is a central concern across diverse financial and energy markets, with research focusing on accurate prediction and risk management. Current investigations employ a range of sophisticated models, including GARCH, LSTM, and various deep learning architectures like Temporal Fusion Transformers and Graph Neural Networks, often combined with techniques like sentiment analysis and functional data analysis to improve forecasting accuracy. These advancements aim to enhance decision-making in areas such as investment strategies, risk assessment, and resource allocation, ultimately contributing to greater market stability and efficiency. The development of robust and reliable volatility prediction models remains a significant challenge, with ongoing efforts to address issues like distribution shifts, bias, and the inherent stochasticity of market dynamics.