Does the weather affect stock market volatility?

L. Symeonidis, G. Daskalakis, R.N. Markellos

Research output: Contribution to journalArticlepeer-review

63 Citations (Scopus)


This paper investigates the empirical association between stock market volatility and investor mood-proxies related to the weather (cloudiness, temperature and precipitation) and the environment (nighttime length). Overall, our results suggest that cloudiness and length of nighttime are inversely related to historical, implied and realized measures of volatility. The strength of association seems to vary with the location of an exchange on Earth with respect to the equator. Weather deviations from seasonal norms and dummies representing extreme weather conditions do not offer additional explanatory power in our datasets. © 2010 Elsevier Inc.
Original languageEnglish
Pages (from-to)214-223
Number of pages10
JournalFinance Research Letters
Issue number4
Publication statusPublished - 1 Dec 2010


  • Behavioural Finance
  • SAD effect
  • Stock market anomalies
  • Sunshine effect
  • Volatility

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