Abstract
This study adopts a new technique from the area of Network
Theory to analyze and understand the relationships among the
stocks of KSE 100 Index in the Pakistan Stock Exchange (PSX).
The stock networks were developed using the stock returns and
stock returns volatility and the dynamic threshold method was used
to extract the important relationships in the networks.Supported by
literature, the findings of this study show that as the threshold limit
was increased the relationships among stocks started to disappear
andit is concluded that volatility networks provide more useful
information about the stock network structures as compared to the
returns networks.The implications of the study are that the PSX is a
scale-free network where the entire stock market is influenced by
only a few strong stocks in the market.
Nadir Khan, Jameel Ahmed, Saubia Ramzan. (2019) Stock Network Structures In The Pakistan Stock Exchange, Journal of Managerial Sciences, Volume 13, special.
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