Innovative Study on Volatility Prediction Model for New Energy Stock Indices

Stock market volatility is a pivotal research area in finance, and accurately forecasting stock market volatility has long been a challenge for both academia and practice. The emergence of the new energy industry has drawn widespread attention to new energy stock indices; however, research on foreca...

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Main Authors: Yanguo Li, Chao Long
Format: Article
Language:English
Published: IEEE 2025-01-01
Series:IEEE Access
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Online Access:https://ieeexplore.ieee.org/document/10856001/
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author Yanguo Li
Chao Long
author_facet Yanguo Li
Chao Long
author_sort Yanguo Li
collection DOAJ
description Stock market volatility is a pivotal research area in finance, and accurately forecasting stock market volatility has long been a challenge for both academia and practice. The emergence of the new energy industry has drawn widespread attention to new energy stock indices; however, research on forecasting their volatility remains limited. To address this, this paper proposes a deep learning ensemble model based on decomposition optimization for predicting the volatility of new energy stock indices. The model comprises three components: variational mode decomposition (VMD), sparrow search algorithm (SSA), and echo state network (ESN). Initially, this paper employs VMD to decompose the original volatility series of new energy stock indices into multiple subsequences. Subsequently, SSA is utilized to optimize ESN. Finally, the constructed VMD-SSA-ESN model is employed to forecast the volatility of new energy stock indices. Through comparative analysis with other forecasting models, this paper finds that the VMD-SSA-ESN model exhibits significantly better forecasting performance across all selected new energy stock index volatility predictions. The research results indicate that the model constructed in this paper can adequately capture the characteristics of the volatility series, and both VMD and SSA effectively enhance the model’s forecasting accuracy and stability. This study can provide robust support for investment decision-making and risk management in the new energy stock market.
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spelling doaj-art-1486a896e5434fba8ee8a82c013dce9d2025-08-20T02:15:28ZengIEEEIEEE Access2169-35362025-01-0113297542977710.1109/ACCESS.2025.353558410856001Innovative Study on Volatility Prediction Model for New Energy Stock IndicesYanguo Li0https://orcid.org/0009-0000-7501-3066Chao Long1School of Economics, Yunnan University of Finance and Economics, Kunming, ChinaFinance Research Institute, Yunnan University of Finance and Economics, Kunming, ChinaStock market volatility is a pivotal research area in finance, and accurately forecasting stock market volatility has long been a challenge for both academia and practice. The emergence of the new energy industry has drawn widespread attention to new energy stock indices; however, research on forecasting their volatility remains limited. To address this, this paper proposes a deep learning ensemble model based on decomposition optimization for predicting the volatility of new energy stock indices. The model comprises three components: variational mode decomposition (VMD), sparrow search algorithm (SSA), and echo state network (ESN). Initially, this paper employs VMD to decompose the original volatility series of new energy stock indices into multiple subsequences. Subsequently, SSA is utilized to optimize ESN. Finally, the constructed VMD-SSA-ESN model is employed to forecast the volatility of new energy stock indices. Through comparative analysis with other forecasting models, this paper finds that the VMD-SSA-ESN model exhibits significantly better forecasting performance across all selected new energy stock index volatility predictions. The research results indicate that the model constructed in this paper can adequately capture the characteristics of the volatility series, and both VMD and SSA effectively enhance the model’s forecasting accuracy and stability. This study can provide robust support for investment decision-making and risk management in the new energy stock market.https://ieeexplore.ieee.org/document/10856001/Volatility predictiondeep learningvariational mode decompositionoptimization algorithmnew energy
spellingShingle Yanguo Li
Chao Long
Innovative Study on Volatility Prediction Model for New Energy Stock Indices
IEEE Access
Volatility prediction
deep learning
variational mode decomposition
optimization algorithm
new energy
title Innovative Study on Volatility Prediction Model for New Energy Stock Indices
title_full Innovative Study on Volatility Prediction Model for New Energy Stock Indices
title_fullStr Innovative Study on Volatility Prediction Model for New Energy Stock Indices
title_full_unstemmed Innovative Study on Volatility Prediction Model for New Energy Stock Indices
title_short Innovative Study on Volatility Prediction Model for New Energy Stock Indices
title_sort innovative study on volatility prediction model for new energy stock indices
topic Volatility prediction
deep learning
variational mode decomposition
optimization algorithm
new energy
url https://ieeexplore.ieee.org/document/10856001/
work_keys_str_mv AT yanguoli innovativestudyonvolatilitypredictionmodelfornewenergystockindices
AT chaolong innovativestudyonvolatilitypredictionmodelfornewenergystockindices