On the nexus between constituents and global energy commodities: an asymmetric analysis

Emmanuel Asafo-Adjei, Samuel Kwaku Agyei, Anokye Mohammed Adam, Ahmed Bossman, Ştefan Cristian Gherghina

Research output: Contribution to journalArticlepeer-review

Abstract

The study examines the nexus between global energy commodity and its constituent across market conditions using the quantile regression approaches. We found that the positive effect of global energy commodity on its constituents was stronger relative to the feedback effect from the constituents. It is pertinent to hedge against fluctuations in the energy commodities using the global energy commodity as an appropriate hedged asset with the required hedging instrument.

Original languageEnglish
Pages (from-to)579-587
Number of pages9
JournalApplied Economics Letters
Volume31
Issue number7
Early online date30 Oct 2022
DOIs
Publication statusPublished - 15 Apr 2024

Keywords

  • Energy sector
  • diversification
  • hedge
  • quantile regressions
  • safe haven

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