Low altitude economy, stock market, conditional mean regression, volatility analysis, multivariate GARCH model
Abstract
Low altitude economy refers to a new economic form of integrated development of low altitude flight activities and their derivative industries. Currently, China’s general aviation industry is constantly developing, the drone industry remains globally leading, emerging concepts such as flying cars are frequently emerging, and downstream application scenarios are constantly increasing. Low altitude economy has become a fertile ground. This article uses the closing price data of China’s Low Altitude Economy Index, Tourism Travel Index, General Aviation Index, Drone Index, and New Energy Index from January 2015 to August 2024, and uses a multivariate dynamic conditional correlation-generalised autoregressive conditional heteroskedasticity(DCC-GARCH) model to explore the dynamic stock returns and volatility correlations between China’s low altitude economy companies and tourism travel companies, general aviation companies, drone companies, and new energy companies. By studying the correlation between the returns and volatility of the low altitude economy stock market, it can reflect the correlation between the development of the low altitude economy industry and other industries. Investors can identify risks based on this, make more informed investment allocations, and also predict the development trend of the industry. The government and regulatory agencies can also formulate and adjust relevant policies based on this to promote the healthy development of the low altitude economy industry.
