Research preview

The upcoming removal of hazardous waste in Croatia’s Lika region highlights how environmental events can create sudden market dislocations. For quantitative traders, understanding and modelling such “event risk” is essential for protecting portfolios and exploiting short‑term opportunities. Event‑Driven Market Dynamics Environmental clean‑up operations often trigger abrupt shifts in investor sentiment. When authorities announce large‑scale waste removal, local industries—tourism, agriculture, and construction—may experience a rapid reassessment of risk. Prices of related equities, commodities, and regional currencies can move sharply in the hours before and after the announcement. Quantitative models that ignore these spikes tend to underestimate volatility and misprice risk....