Multidimensional connectedness among the fourth industrial revolution assets

This study investigates the multidimensional connectedness between various Fourth Industrial Revolution assets and global commodities to analyze their role in portfolio diversification. Using dynamic conditional correlation-generalized autoregressive conditional heteroskedasticity (DCC-GARCH), Barun...

وصف كامل

محفوظ في:
التفاصيل البيبلوغرافية
المؤلف الرئيسي: El Khoury, Rim (author)
مؤلفون آخرون: Alshater, Muneer M. (author), Li, Yanshuang (author)
التنسيق: article
منشور في: 2023
الوصول للمادة أونلاين:http://hdl.handle.net/10725/14978
https://doi.org/10.1016/j.bir.2023.04.002
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
https://www.sciencedirect.com/science/article/pii/S2214845023000546
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author El Khoury, Rim
author2 Alshater, Muneer M.
Li, Yanshuang
author2_role author
author
author_facet El Khoury, Rim
Alshater, Muneer M.
Li, Yanshuang
author_role author
dc.creator.none.fl_str_mv El Khoury, Rim
Alshater, Muneer M.
Li, Yanshuang
dc.date.none.fl_str_mv 2023-08-29T09:54:30Z
2023-08-29T09:54:30Z
2023
2023-07-20
dc.identifier.none.fl_str_mv 2214-8450
http://hdl.handle.net/10725/14978
https://doi.org/10.1016/j.bir.2023.04.002
El Khoury, R., Alshater, M. M., & Li, Y. (2023). Multidimensional connectedness among the fourth industrial revolution assets. Borsa Istanbul Review, 23(4), 953-979.
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
https://www.sciencedirect.com/science/article/pii/S2214845023000546
dc.language.none.fl_str_mv en
dc.relation.none.fl_str_mv Borsa Istanbul Review
dc.rights.*.fl_str_mv info:eu-repo/semantics/openAccess
dc.title.none.fl_str_mv Multidimensional connectedness among the fourth industrial revolution assets
dc.type.none.fl_str_mv Article
info:eu-repo/semantics/publishedVersion
info:eu-repo/semantics/article
description This study investigates the multidimensional connectedness between various Fourth Industrial Revolution assets and global commodities to analyze their role in portfolio diversification. Using dynamic conditional correlation-generalized autoregressive conditional heteroskedasticity (DCC-GARCH), Baruník and Křehlík (BK) frequency connectedness, and quantile connectedness, we estimate the time-frequency connectedness involved in the transmission mechanism at the upper, middle, and lower quantiles, using empirical data from April 30, 2018, to January 9, 2023, which incorporates data before and during the pandemic and consider the impact of the Russia-Ukraine conflict. Our findings reveal that Fourth Industrial Revolution assets are highly correlated, especially during periods of stress and crisis, which necessitates portfolio diversification during such periods. We also find that holding these assets over the long run is better than holding them in the short run. Our results indicate that the connectedness network assessed at the conditional median quantile is not reflective of the level of connectedness associated with substantial positive or negative shocks. This study is of high importance to investors in Fourth Industrial Revolution assets.
eu_rights_str_mv openAccess
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identifier_str_mv 2214-8450
El Khoury, R., Alshater, M. M., & Li, Y. (2023). Multidimensional connectedness among the fourth industrial revolution assets. Borsa Istanbul Review, 23(4), 953-979.
language_invalid_str_mv en
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network_name_str Lebanese American University repository
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spelling Multidimensional connectedness among the fourth industrial revolution assetsEl Khoury, RimAlshater, Muneer M.Li, YanshuangThis study investigates the multidimensional connectedness between various Fourth Industrial Revolution assets and global commodities to analyze their role in portfolio diversification. Using dynamic conditional correlation-generalized autoregressive conditional heteroskedasticity (DCC-GARCH), Baruník and Křehlík (BK) frequency connectedness, and quantile connectedness, we estimate the time-frequency connectedness involved in the transmission mechanism at the upper, middle, and lower quantiles, using empirical data from April 30, 2018, to January 9, 2023, which incorporates data before and during the pandemic and consider the impact of the Russia-Ukraine conflict. Our findings reveal that Fourth Industrial Revolution assets are highly correlated, especially during periods of stress and crisis, which necessitates portfolio diversification during such periods. We also find that holding these assets over the long run is better than holding them in the short run. Our results indicate that the connectedness network assessed at the conditional median quantile is not reflective of the level of connectedness associated with substantial positive or negative shocks. This study is of high importance to investors in Fourth Industrial Revolution assets.Published2023-08-29T09:54:30Z2023-08-29T09:54:30Z20232023-07-20Articleinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/article2214-8450http://hdl.handle.net/10725/14978https://doi.org/10.1016/j.bir.2023.04.002El Khoury, R., Alshater, M. M., & Li, Y. (2023). Multidimensional connectedness among the fourth industrial revolution assets. Borsa Istanbul Review, 23(4), 953-979.http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.phphttps://www.sciencedirect.com/science/article/pii/S2214845023000546enBorsa Istanbul Reviewinfo:eu-repo/semantics/openAccessoai:laur.lau.edu.lb:10725/149782024-07-10T11:18:59Z
spellingShingle Multidimensional connectedness among the fourth industrial revolution assets
El Khoury, Rim
status_str publishedVersion
title Multidimensional connectedness among the fourth industrial revolution assets
title_full Multidimensional connectedness among the fourth industrial revolution assets
title_fullStr Multidimensional connectedness among the fourth industrial revolution assets
title_full_unstemmed Multidimensional connectedness among the fourth industrial revolution assets
title_short Multidimensional connectedness among the fourth industrial revolution assets
title_sort Multidimensional connectedness among the fourth industrial revolution assets
url http://hdl.handle.net/10725/14978
https://doi.org/10.1016/j.bir.2023.04.002
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
https://www.sciencedirect.com/science/article/pii/S2214845023000546