The Price Volatility of Red Onion in Davao City

Abstract

Onions are a prominent vegetable in the Philippines. It is generally used as a condiment, particularly in traditional cuisine. Previous research has proven that the price of red onion is highly volatile. This study is conducted to acquire an accurate forecast of the price volatility of red onion in Davao City. The researchers used secondary data from the Philippine Statistics Authority (PSA) to examine and assess the price volatility of red onion, particularly in Davao City. Accordingly, the gathered data were statistically evaluated using the JB test, Chi-squared test, skewness, kurtosis, and P-value to measure the price volatility. The result shows the high price volatility of red onion in Davao City, which indicates the existence of volatility in 12 months. In some months, there is a high positive correlation as well as a negative one. This means there can be peaks and low prices of red onion, but in general, it all suggests high price volatility. In addition, based on the results, there is significant price volatility due to the positive and negative shocks, which causes the price to be unstable or asymmetric.