Herding Behavior on the Stock Market
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.