Analysis of value at risk and stock market risk components as a measurement of market risk: case study of Uganda

In these refined market environments, financial institutions with adequate liquidity can usually hedge against market volatility. As a result net effective open position decides the amount of the portfolio that remains disclosed to market risk, whereby Value at Risk can measure it. The appproach of VaR is a prospective risk measurement method which can be implemented to the entire financial instruments and used in the measurement of market risk. When it comes to a portfolio of shares, market risk is triggered by the price change measures which are being discussed and because of this, it is vital to study carefully the historical development of prices in order to be able to determine whether there is a certain recurring trend that may disturb the portfolio in the future. The main goal of the study is to illustrates the measurement of market risk using Value at risk and stock market risk components in Uganda. Uganda's economy and securities for exchange policy proposals. Keywords: Value at Risk, Market risk measurement, Uganda stock market exchange, stock market risk components