Do ESG Ratings Impact Stock Price Volatility?
JULY 12, 2022
- Understanding the trading characteristics of stocks with different ESG ratings can be a useful part of an overall Best Execution / TCA process.
- Higher ESG ratings can often be associated with lower overall price volatility and smaller volatility spikes.
- When moving from stocks with higher ESG ratings to those with lower ESG ratings, both the floor and the ceiling of 5-minute price volatility increases.