Download pdf
Changes in Cisco Stock Prices under the Uncertain Interest Rate Policy: Based on ARIMA Model
- 1 Ravenswood School For Girls
* Author to whom correspondence should be addressed.
Abstract
As The Federal Reserve System (Fed) raised the interest rate for 6 times from March 15th until December. The consecutively raise of interest rate by 75 basis points each time throughout the year for 4 times has reached the maximum extent comparing to the past 40 years. Fed interest rate hike not only has impacts on the United States economics, but also bringing different effects globally. As a result, stock price of companies can change accordingly to the interest rate hike. Cisco, as a multinational cooperation technology company first founded in America, is chosen to be analyzed. The data of Cisco stock (CSCO) price from 2021 March to 2022 March is extracted and ARIMA model is used for forecasting stock price in the time series. The study account for the difference between values forecasted by ARIMA and the actual values, and thus observe the impact of Fed interest rate hike on Cisco stock price, further explanations related to the difference. The Fed interest rate hike result in decrease in Cisco stock price.
Keywords
fed interest rate hike, stock price, impacts, ARIMA model, Cisco
[1]. Federal Reserve History. (2021). Overview: The History of the Federal Reserve. https://www.federalreservehistory.org/essays/federal-reserve-history
[2]. Board of Governors of the Federal Reserve System. (2016). What is the purpose of the Federal Reserve System? https://www.federalreserve.gov/faqs/about_12594.htm
[3]. Science and Technology Think Tank Thematic Research Group. (2018). Fed rate hike impact on global economy. http://www.cnki.com.cn/Article/CJFDTotal-YNJR201715003.htm
[4]. ZhiHu. (2021). What is the impact of Fed interest rate rise. https://zhuanlan.zhihu.com/p/419390279
[5]. Chen, Z., Fang, Y., & JunZhi, W. (2019). Reasons for the Fed's gradual rate hikes and Its Impact on Global Capital Markets. Modern Management Science-Macroeconomics. http://www.cqvip.com/qk/90311x/201903/7001189277.html
[6]. Britannica. (2022). Cisco Systems. https://www.britannica.com/place/San-Jose-California
[7]. MBA Library. (2009). Introduction to Cisco Systems. https://wiki.mbalib.com/wiki/%E6%80%9D%E7%A7%91%E7%B3%BB%E7%BB%9F%E5%85%AC%E5%8F%B8
[8]. Contractor UK. (n.d.). Cisco. https://www.contractoruk.com/contracting-jobs-rates/cisco.html
[9]. Statistics How To. (n.d.) ADF — Augmented Dickey Fuller Test. https://www.statisticshowto.com/adf-augmented-dickey-fuller-test/
[10]. Cisco. (2020). Analytics & Intelligent Automation. Time Series Analysis with ARIMA: Part 2. https://blogs.cisco.com/analytics-automation/arima2
[11]. Jayesh, S. Towards Data Science. (2019). Significance of ACF and PACF Plots In Time Series Analysis. https://towardsdatascience.com/significance-of-acf-and-pacf-plots-in-time-series-analysis-2fa11a5d10a8
Cite this article
Jia,J. (2023). Changes in Cisco Stock Prices under the Uncertain Interest Rate Policy: Based on ARIMA Model. Advances in Economics, Management and Political Sciences,19,56-61.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
Disclaimer/Publisher's Note
The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.
About volume
Volume title: Proceedings of the 2023 International Conference on Management Research and Economic Development
© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license. Authors who
publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons
Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this
series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published
version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial
publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and
during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See
Open access policy for details).