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Volatility behavior of oil, industrial commodity and stock markets in a regime-switching environment
Journal article   Peer reviewed

Volatility behavior of oil, industrial commodity and stock markets in a regime-switching environment

Kyongwook Choi and Shawkat Hammoudeh
Energy policy, v 38(8), pp 4388-4399
2010

Abstract

Commodities Regime switching Volatility
This study supplements previous regime-switching studies on WTI crude oil and finds two possible volatility regimes for the strategic commodity prices of Brent oil, WTI oil, copper, gold and silver, and the S&P 500 index, but with varying high-to-low volatility ratios. The dynamic conditional correlations (DCCs) indicate increasing correlations among all the commodities since the 2003 Iraq war but decreasing correlations with the S&P 500 index. The commodities also show different volatility persistence responses to financial and geopolitical crises, while the S&P 500 index responds to both financial and geopolitical crises. Implications are discussed.

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290 citations in Scopus

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Collaboration types
Domestic collaboration
International collaboration
Web of Science research areas
Economics
Energy & Fuels
Environmental Sciences
Environmental Studies
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