Time-frequency moment interdependence of equity, oil, and gold markets during the COVID-19 pandemic

<p dir="ltr">Like no other calamitous event in recent memory, the COVID-19 pandemic has plunged the world’s financial system into disarray, triggering systemic risk spillovers across markets. In this study, we use 5-minute index futures price data to examine the multiscale interdepen...

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Main Author: Walid M. A. Ahmed (21398039) (author)
Other Authors: Mohamed A.E. Sleem (21398042) (author)
Published: 2022
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author Walid M. A. Ahmed (21398039)
author2 Mohamed A.E. Sleem (21398042)
author2_role author
author_facet Walid M. A. Ahmed (21398039)
Mohamed A.E. Sleem (21398042)
author_role author
dc.creator.none.fl_str_mv Walid M. A. Ahmed (21398039)
Mohamed A.E. Sleem (21398042)
dc.date.none.fl_str_mv 2022-06-07T03:00:00Z
dc.identifier.none.fl_str_mv 10.1080/23322039.2022.2085292
dc.relation.none.fl_str_mv https://figshare.com/articles/journal_contribution/Time-frequency_moment_interdependence_of_equity_oil_and_gold_markets_during_the_COVID-19_pandemic/29116979
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
Econometrics
Equity markets
gold
crude oil
realized moments
moment linkage
wavelet phase-difference
dc.title.none.fl_str_mv Time-frequency moment interdependence of equity, oil, and gold 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 dir="ltr">Like no other calamitous event in recent memory, the COVID-19 pandemic has plunged the world’s financial system into disarray, triggering systemic risk spillovers across markets. In this study, we use 5-minute index futures price data to examine the multiscale interdependence structure of global equity, gold, and oil markets prior to and following the COVID-19 outbreak, in terms of the first four realized moments of their respective return distributions (i.e., mean, variance, skewness, and kurtosis). With respect to the equity-gold nexus, we find that stock (gold) returns and volatility negatively (positively) lead their gold (stock) counterparts at medium- and long-term scales in the pandemic period, while asymmetry risk in stock markets positively leads its counterpart in gold markets at the same scales before and during the early months of the health crisis. Concerning the oil-equity nexus, our results reveal a positive (negative) co-movement between asymmetry risks at short- and medium-term scales in January-April (May-July) 2020, whereas heavy tail risks are positively synchronized at low frequencies in the turbulent period of March-April 2020. Some policy implications are derived from the analysis.</p><h2>Other Information</h2><p dir="ltr">Published in: Cogent Economics & Finance<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/10.1080/23322039.2022.2085292" target="_blank">https://dx.doi.org/10.1080/23322039.2022.2085292</a></p>
eu_rights_str_mv openAccess
id Manara2_a5312dda7c85f7777f6f31d673f9c02e
identifier_str_mv 10.1080/23322039.2022.2085292
network_acronym_str Manara2
network_name_str Manara2
oai_identifier_str oai:figshare.com:article/29116979
publishDate 2022
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rights_invalid_str_mv CC BY 4.0
spelling Time-frequency moment interdependence of equity, oil, and gold markets during the COVID-19 pandemicWalid M. A. Ahmed (21398039)Mohamed A.E. Sleem (21398042)Commerce, management, tourism and servicesBanking, finance and investmentEconomicsEconometricsEquity marketsgoldcrude oilrealized momentsmoment linkagewavelet phase-difference<p dir="ltr">Like no other calamitous event in recent memory, the COVID-19 pandemic has plunged the world’s financial system into disarray, triggering systemic risk spillovers across markets. In this study, we use 5-minute index futures price data to examine the multiscale interdependence structure of global equity, gold, and oil markets prior to and following the COVID-19 outbreak, in terms of the first four realized moments of their respective return distributions (i.e., mean, variance, skewness, and kurtosis). With respect to the equity-gold nexus, we find that stock (gold) returns and volatility negatively (positively) lead their gold (stock) counterparts at medium- and long-term scales in the pandemic period, while asymmetry risk in stock markets positively leads its counterpart in gold markets at the same scales before and during the early months of the health crisis. Concerning the oil-equity nexus, our results reveal a positive (negative) co-movement between asymmetry risks at short- and medium-term scales in January-April (May-July) 2020, whereas heavy tail risks are positively synchronized at low frequencies in the turbulent period of March-April 2020. Some policy implications are derived from the analysis.</p><h2>Other Information</h2><p dir="ltr">Published in: Cogent Economics & Finance<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/10.1080/23322039.2022.2085292" target="_blank">https://dx.doi.org/10.1080/23322039.2022.2085292</a></p>2022-06-07T03:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1080/23322039.2022.2085292https://figshare.com/articles/journal_contribution/Time-frequency_moment_interdependence_of_equity_oil_and_gold_markets_during_the_COVID-19_pandemic/29116979CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/291169792022-06-07T03:00:00Z
spellingShingle Time-frequency moment interdependence of equity, oil, and gold markets during the COVID-19 pandemic
Walid M. A. Ahmed (21398039)
Commerce, management, tourism and services
Banking, finance and investment
Economics
Econometrics
Equity markets
gold
crude oil
realized moments
moment linkage
wavelet phase-difference
status_str publishedVersion
title Time-frequency moment interdependence of equity, oil, and gold markets during the COVID-19 pandemic
title_full Time-frequency moment interdependence of equity, oil, and gold markets during the COVID-19 pandemic
title_fullStr Time-frequency moment interdependence of equity, oil, and gold markets during the COVID-19 pandemic
title_full_unstemmed Time-frequency moment interdependence of equity, oil, and gold markets during the COVID-19 pandemic
title_short Time-frequency moment interdependence of equity, oil, and gold markets during the COVID-19 pandemic
title_sort Time-frequency moment interdependence of equity, oil, and gold markets during the COVID-19 pandemic
topic Commerce, management, tourism and services
Banking, finance and investment
Economics
Econometrics
Equity markets
gold
crude oil
realized moments
moment linkage
wavelet phase-difference