Herding Behavior on the Stock Market

Sergey Okun  This article was written by Sergey Okun – Senior Financial Analyst, I Know First, Ph.D. in Economics.

Summary:

  • Herding behavior refers to the tendency of individuals to follow the actions or decisions of a larger group of people, rather than making independent decisions.
  • The CSAD model enables us to identify periods of herding behavior on the stock market.
  • We implement the CSAD model and identify cases of herding behavior on the stock market for the period from January 1st, 2020 to April 19th, 2023.

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