Oil Products and the Volatility Index: Bivariate Volatility Relationships Within a T-GARCH Model

I provide, in this paper, evidence on the contribution of crude oil excess volatility to the volatility index. Crude oil leads the volatility index by 16 basis points (BP) 6 months ahead of time. This leadership is reversal and covers the period from January 21, 2000 to the end of 2011. The lagged a...

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التفاصيل البيبلوغرافية
المؤلف الرئيسي: Ben Sita, Bernard (author)
التنسيق: conferenceObject
منشور في: 2017
الوصول للمادة أونلاين:http://hdl.handle.net/10725/5964
http://dx.doi.org/10.2139/ssrn.2065321
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2065321
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author Ben Sita, Bernard
author_facet Ben Sita, Bernard
author_role author
dc.creator.none.fl_str_mv Ben Sita, Bernard
dc.date.none.fl_str_mv 2017-07-25T11:22:40Z
2017-07-25T11:22:40Z
2017-07-25
dc.identifier.none.fl_str_mv http://hdl.handle.net/10725/5964
http://dx.doi.org/10.2139/ssrn.2065321
Ben Sita, B. (2012). Oil Products and the Volatility Index: Bivariate Volatility Relationships Within a T-GARCH Model.
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2065321
dc.language.none.fl_str_mv en
dc.rights.*.fl_str_mv info:eu-repo/semantics/openAccess
dc.title.none.fl_str_mv Oil Products and the Volatility Index: Bivariate Volatility Relationships Within a T-GARCH Model
dc.type.none.fl_str_mv Conference Paper / Proceeding
info:eu-repo/semantics/publishedVersion
info:eu-repo/semantics/conferenceObject
description I provide, in this paper, evidence on the contribution of crude oil excess volatility to the volatility index. Crude oil leads the volatility index by 16 basis points (BP) 6 months ahead of time. This leadership is reversal and covers the period from January 21, 2000 to the end of 2011. The lagged and the contemporaneous effects amount to 35BP and 21BP, respectively. Moreover, I provide volatility quantities that would spill over from crude oil to refined oil products, and from crude oil to the volatility index. Based on a T-GARCH model augmented with correlation-weighted volatility ratios, I document quantities that can be useful in program trading.
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identifier_str_mv Ben Sita, B. (2012). Oil Products and the Volatility Index: Bivariate Volatility Relationships Within a T-GARCH Model.
language_invalid_str_mv en
network_acronym_str LAURepo
network_name_str Lebanese American University repository
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publishDate 2017
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spelling Oil Products and the Volatility Index: Bivariate Volatility Relationships Within a T-GARCH ModelBen Sita, BernardI provide, in this paper, evidence on the contribution of crude oil excess volatility to the volatility index. Crude oil leads the volatility index by 16 basis points (BP) 6 months ahead of time. This leadership is reversal and covers the period from January 21, 2000 to the end of 2011. The lagged and the contemporaneous effects amount to 35BP and 21BP, respectively. Moreover, I provide volatility quantities that would spill over from crude oil to refined oil products, and from crude oil to the volatility index. Based on a T-GARCH model augmented with correlation-weighted volatility ratios, I document quantities that can be useful in program trading.N/A28 p.2017-07-25T11:22:40Z2017-07-25T11:22:40Z2017-07-25Conference Paper / Proceedinginfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/conferenceObjecthttp://hdl.handle.net/10725/5964http://dx.doi.org/10.2139/ssrn.2065321Ben Sita, B. (2012). Oil Products and the Volatility Index: Bivariate Volatility Relationships Within a T-GARCH Model.http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.phphttps://papers.ssrn.com/sol3/papers.cfm?abstract_id=2065321eninfo:eu-repo/semantics/openAccessoai:laur.lau.edu.lb:10725/59642021-03-19T09:10:08Z
spellingShingle Oil Products and the Volatility Index: Bivariate Volatility Relationships Within a T-GARCH Model
Ben Sita, Bernard
status_str publishedVersion
title Oil Products and the Volatility Index: Bivariate Volatility Relationships Within a T-GARCH Model
title_full Oil Products and the Volatility Index: Bivariate Volatility Relationships Within a T-GARCH Model
title_fullStr Oil Products and the Volatility Index: Bivariate Volatility Relationships Within a T-GARCH Model
title_full_unstemmed Oil Products and the Volatility Index: Bivariate Volatility Relationships Within a T-GARCH Model
title_short Oil Products and the Volatility Index: Bivariate Volatility Relationships Within a T-GARCH Model
title_sort Oil Products and the Volatility Index: Bivariate Volatility Relationships Within a T-GARCH Model
url http://hdl.handle.net/10725/5964
http://dx.doi.org/10.2139/ssrn.2065321
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2065321