Riding the waves: A study of retrun spillovers and inter-sector linkages in US equity markets during the COVID-19 pandemic

<p>In times of crisis, stock markets experience a significant increase in return volatility, which leads to spillovers across equity sectors. The purpose of this study is to investigate the asymmetric spillovers across ten U.S. equity sectors, representing different industries. Daily prices of...

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محفوظ في:
التفاصيل البيبلوغرافية
المؤلف الرئيسي: Umar Kayani (17986576) (author)
مؤلفون آخرون: Ahmet Faruk Aysan (11902115) (author), Mrestyal Khan (17986579) (author), Maaz Khan (7843460) (author), Farrukh Nawaz (17986582) (author)
منشور في: 2024
الموضوعات:
الوسوم: إضافة وسم
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author Umar Kayani (17986576)
author2 Ahmet Faruk Aysan (11902115)
Mrestyal Khan (17986579)
Maaz Khan (7843460)
Farrukh Nawaz (17986582)
author2_role author
author
author
author
author_facet Umar Kayani (17986576)
Ahmet Faruk Aysan (11902115)
Mrestyal Khan (17986579)
Maaz Khan (7843460)
Farrukh Nawaz (17986582)
author_role author
dc.creator.none.fl_str_mv Umar Kayani (17986576)
Ahmet Faruk Aysan (11902115)
Mrestyal Khan (17986579)
Maaz Khan (7843460)
Farrukh Nawaz (17986582)
dc.date.none.fl_str_mv 2024-01-28T06:00:00Z
dc.identifier.none.fl_str_mv 10.1016/j.heliyon.2024.e25203
dc.relation.none.fl_str_mv https://figshare.com/articles/journal_contribution/Riding_the_waves_A_study_of_retrun_spillovers_and_inter-sector_linkages_in_US_equity_markets_during_the_COVID-19_pandemic/25242976
dc.rights.none.fl_str_mv CC BY 4.0
info:eu-repo/semantics/openAccess
dc.subject.none.fl_str_mv Commerce, management, tourism and services
Banking, finance and investment
Economics
Applied economics
COVID-19
U.S sector indices
Returns
Spillovers
DY methodology
dc.title.none.fl_str_mv Riding the waves: A study of retrun spillovers and inter-sector linkages in US equity markets during the COVID-19 pandemic
dc.type.none.fl_str_mv Text
Journal contribution
info:eu-repo/semantics/publishedVersion
text
contribution to journal
description <p>In times of crisis, stock markets experience a significant increase in return volatility, which leads to spillovers across equity sectors. The purpose of this study is to investigate the asymmetric spillovers across ten U.S. equity sectors, representing different industries. Daily prices of sector indices were collected from 02 January 2018 to 22 October 2021 for the analysis. In addition, the study applied Diebold and Yilmaz's (2012) dynamic spillover methodology, along with the static and rolling windows phenomena, to examine the daily returns spillovers across sector indices. The results indicate that 82 % of volatility forecast error variance in U.S sector indices is due to the spillover effect. Moreover, both industrials and financials exhibit the highest gross spillovers to other sectors, while they also receive the highest spillovers from other sectors. Furthermore, the oil and gas sector and utilities sector receive the highest net returns spillovers. These empirical findings provide crucial information regarding the interdependence of U.S. sector indices during the COVID-19 pandemic, which is relevant for investors and practitioners.</p><h2>Other Information</h2> <p> Published in: Heliyon<br> License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.heliyon.2024.e25203" target="_blank">https://dx.doi.org/10.1016/j.heliyon.2024.e25203</a></p>
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identifier_str_mv 10.1016/j.heliyon.2024.e25203
network_acronym_str Manara2
network_name_str Manara2
oai_identifier_str oai:figshare.com:article/25242976
publishDate 2024
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spelling Riding the waves: A study of retrun spillovers and inter-sector linkages in US equity markets during the COVID-19 pandemicUmar Kayani (17986576)Ahmet Faruk Aysan (11902115)Mrestyal Khan (17986579)Maaz Khan (7843460)Farrukh Nawaz (17986582)Commerce, management, tourism and servicesBanking, finance and investmentEconomicsApplied economicsCOVID-19U.S sector indicesReturnsSpilloversDY methodology<p>In times of crisis, stock markets experience a significant increase in return volatility, which leads to spillovers across equity sectors. The purpose of this study is to investigate the asymmetric spillovers across ten U.S. equity sectors, representing different industries. Daily prices of sector indices were collected from 02 January 2018 to 22 October 2021 for the analysis. In addition, the study applied Diebold and Yilmaz's (2012) dynamic spillover methodology, along with the static and rolling windows phenomena, to examine the daily returns spillovers across sector indices. The results indicate that 82 % of volatility forecast error variance in U.S sector indices is due to the spillover effect. Moreover, both industrials and financials exhibit the highest gross spillovers to other sectors, while they also receive the highest spillovers from other sectors. Furthermore, the oil and gas sector and utilities sector receive the highest net returns spillovers. These empirical findings provide crucial information regarding the interdependence of U.S. sector indices during the COVID-19 pandemic, which is relevant for investors and practitioners.</p><h2>Other Information</h2> <p> Published in: Heliyon<br> License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.heliyon.2024.e25203" target="_blank">https://dx.doi.org/10.1016/j.heliyon.2024.e25203</a></p>2024-01-28T06:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1016/j.heliyon.2024.e25203https://figshare.com/articles/journal_contribution/Riding_the_waves_A_study_of_retrun_spillovers_and_inter-sector_linkages_in_US_equity_markets_during_the_COVID-19_pandemic/25242976CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/252429762024-01-28T06:00:00Z
spellingShingle Riding the waves: A study of retrun spillovers and inter-sector linkages in US equity markets during the COVID-19 pandemic
Umar Kayani (17986576)
Commerce, management, tourism and services
Banking, finance and investment
Economics
Applied economics
COVID-19
U.S sector indices
Returns
Spillovers
DY methodology
status_str publishedVersion
title Riding the waves: A study of retrun spillovers and inter-sector linkages in US equity markets during the COVID-19 pandemic
title_full Riding the waves: A study of retrun spillovers and inter-sector linkages in US equity markets during the COVID-19 pandemic
title_fullStr Riding the waves: A study of retrun spillovers and inter-sector linkages in US equity markets during the COVID-19 pandemic
title_full_unstemmed Riding the waves: A study of retrun spillovers and inter-sector linkages in US equity markets during the COVID-19 pandemic
title_short Riding the waves: A study of retrun spillovers and inter-sector linkages in US equity markets during the COVID-19 pandemic
title_sort Riding the waves: A study of retrun spillovers and inter-sector linkages in US equity markets during the COVID-19 pandemic
topic Commerce, management, tourism and services
Banking, finance and investment
Economics
Applied economics
COVID-19
U.S sector indices
Returns
Spillovers
DY methodology