AI companies' strategies with traditional vs. digital assets amid geopolitical and banking crises
The financial industry evolves rapidly, offering numerous opportunities but also introducing inherent risks that require careful navigation by institutions. This paper explores the performance of traditional and digital assets as tools for hedging, diversification, and safe-haven strategies during t...
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| Format: | Article |
| Language: | English |
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Elsevier
2024-12-01
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| Series: | Heliyon |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844024164134 |
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| author | Wael Dammak Mohamed Fakhfekh Hind Alnafisah Ahmed Jeribi |
| author_facet | Wael Dammak Mohamed Fakhfekh Hind Alnafisah Ahmed Jeribi |
| author_sort | Wael Dammak |
| collection | DOAJ |
| description | The financial industry evolves rapidly, offering numerous opportunities but also introducing inherent risks that require careful navigation by institutions. This paper explores the performance of traditional and digital assets as tools for hedging, diversification, and safe-haven strategies during the Russian-Ukrainian crisis and the Silicon Valley Bank (SVB) collapse. Utilizing daily data from April 30, 2021, to September 15, 2023, and employing the Asymmetric Dynamic Conditional Correlation (ADCC) model, which combines four Generalized Autoregressive Conditional Heteroskedasticity (GARCH) family models and two residual distributions, we conduct a comprehensive analysis. The results indicate that Bitcoin's role as a safe haven is limited during the geopolitical crisis, impacting specific stocks, while gold's effectiveness varies. Digix Gold (DGX) demonstrates robust safe-haven properties, and Paxos Gold (PAXG) proves notably effective for certain stocks. Before the SVB crisis, gold primarily acts as a diversifier but later emerges as a significant safe haven during the banking crisis. These findings provide valuable insights to portfolio managers, emphasizing the importance of adaptive asset allocation in addressing financial uncertainties. |
| format | Article |
| id | doaj-art-47ad83279a914bbe92d88dfc25e2f226 |
| institution | OA Journals |
| issn | 2405-8440 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj-art-47ad83279a914bbe92d88dfc25e2f2262025-08-20T02:38:17ZengElsevierHeliyon2405-84402024-12-011023e4038210.1016/j.heliyon.2024.e40382AI companies' strategies with traditional vs. digital assets amid geopolitical and banking crisesWael Dammak0Mohamed Fakhfekh1Hind Alnafisah2Ahmed Jeribi3Eslsca Business School–CERFIM, Paris, FranceHigher Institute of Business Administration of Sfax, TunisiaDepartment of Economics, College of Business Administration, Princess Nourah bint Abdulrahman University, P.O.Box 84428, Riyadh, 11671, Saudi Arabia; Corresponding author.Faculty of Economics and Management of Mahdia, TunisiaThe financial industry evolves rapidly, offering numerous opportunities but also introducing inherent risks that require careful navigation by institutions. This paper explores the performance of traditional and digital assets as tools for hedging, diversification, and safe-haven strategies during the Russian-Ukrainian crisis and the Silicon Valley Bank (SVB) collapse. Utilizing daily data from April 30, 2021, to September 15, 2023, and employing the Asymmetric Dynamic Conditional Correlation (ADCC) model, which combines four Generalized Autoregressive Conditional Heteroskedasticity (GARCH) family models and two residual distributions, we conduct a comprehensive analysis. The results indicate that Bitcoin's role as a safe haven is limited during the geopolitical crisis, impacting specific stocks, while gold's effectiveness varies. Digix Gold (DGX) demonstrates robust safe-haven properties, and Paxos Gold (PAXG) proves notably effective for certain stocks. Before the SVB crisis, gold primarily acts as a diversifier but later emerges as a significant safe haven during the banking crisis. These findings provide valuable insights to portfolio managers, emphasizing the importance of adaptive asset allocation in addressing financial uncertainties.http://www.sciencedirect.com/science/article/pii/S2405844024164134G01G10G11G2 |
| spellingShingle | Wael Dammak Mohamed Fakhfekh Hind Alnafisah Ahmed Jeribi AI companies' strategies with traditional vs. digital assets amid geopolitical and banking crises Heliyon G01 G10 G11 G2 |
| title | AI companies' strategies with traditional vs. digital assets amid geopolitical and banking crises |
| title_full | AI companies' strategies with traditional vs. digital assets amid geopolitical and banking crises |
| title_fullStr | AI companies' strategies with traditional vs. digital assets amid geopolitical and banking crises |
| title_full_unstemmed | AI companies' strategies with traditional vs. digital assets amid geopolitical and banking crises |
| title_short | AI companies' strategies with traditional vs. digital assets amid geopolitical and banking crises |
| title_sort | ai companies strategies with traditional vs digital assets amid geopolitical and banking crises |
| topic | G01 G10 G11 G2 |
| url | http://www.sciencedirect.com/science/article/pii/S2405844024164134 |
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