# A Network Analysis of the Impact of the Coronavirus Pandemic on the US Economy: A Comparison of the Return and the Momentum Picture

## TL;DR

This paper uses network analysis to study how the coronavirus pandemic changed the US economy by comparing company returns and momentum data.

## Contribution

The paper introduces momentum time series combining return and volume data, offering new insights into economic changes during the pandemic.

## Key findings

- Momentum time series reveal different economic insights compared to traditional return data.
- Network structures based on Manhattan and Mantegna distances show shifts in market behavior during the pandemic.
- Government actions and pandemic effects are reflected in altered market correlations and economic conditions.

## Abstract

This study examines a cross-correlation analysis of companies included in the S&P 500 Index at three different intervals: before, during, and after the pandemic’s onset. The aim is to evaluate how the pandemic and related governmental actions have affected market structures and economic conditions. This paper introduces the notion of momentum time series, integrating return and volume data. We show that these momentum time series provide unique insights that differ from return time series, suggesting their potential utility in economic analysis. Our analysis employs the Manhattan and Mantegna distances to construct a threshold-based network, which we subsequently scrutinize. Lastly, we evaluate how the pandemic has influenced these outcomes.