Comovement and contagion in commodity markets

This article investigates comovement and contagions in the commodities markets. We examine the comovement by analyzing the unconditional correlation coefficients. We document that commodities tend to partially integrate. We perform contagion tests by identifying coexceedances and estimating multinom...

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Main Authors: Dony Abdul Chalid, Rangga Handika
Format: Article
Language:English
Published: Taylor & Francis Group 2022-12-01
Series:Cogent Economics & Finance
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23322039.2022.2064079
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author Dony Abdul Chalid
Rangga Handika
author_facet Dony Abdul Chalid
Rangga Handika
author_sort Dony Abdul Chalid
collection DOAJ
description This article investigates comovement and contagions in the commodities markets. We examine the comovement by analyzing the unconditional correlation coefficients. We document that commodities tend to partially integrate. We perform contagion tests by identifying coexceedances and estimating multinomial logit to explain the joint occurrence of those coexceedances. We document that commodities price changes tend to affect the probability of both positive and negative coexceedances. Overall, we conclude that there are comovement and contagions among commodities. However, the degrees of comovement and contagion are different among commodities and between positive and negative extreme returns. The contagion among commodities is asymmetric.
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spelling doaj-art-913bcb44136d4c5a8fd728f1db719bca2025-08-20T02:01:24ZengTaylor & Francis GroupCogent Economics & Finance2332-20392022-12-0110110.1080/23322039.2022.2064079Comovement and contagion in commodity marketsDony Abdul Chalid0Rangga Handika1Department of Management, Lecturer at the Faculty of Economics and Business, Universitas Indonesia, Depok, IndonesiaLecturer at the Institute for International Strategy (IIS) in Tokyo International University (TIU), Tokyo, JapanThis article investigates comovement and contagions in the commodities markets. We examine the comovement by analyzing the unconditional correlation coefficients. We document that commodities tend to partially integrate. We perform contagion tests by identifying coexceedances and estimating multinomial logit to explain the joint occurrence of those coexceedances. We document that commodities price changes tend to affect the probability of both positive and negative coexceedances. Overall, we conclude that there are comovement and contagions among commodities. However, the degrees of comovement and contagion are different among commodities and between positive and negative extreme returns. The contagion among commodities is asymmetric.https://www.tandfonline.com/doi/10.1080/23322039.2022.2064079Commodity marketsCorrelationComovementContagionMultinomial logit
spellingShingle Dony Abdul Chalid
Rangga Handika
Comovement and contagion in commodity markets
Cogent Economics & Finance
Commodity markets
Correlation
Comovement
Contagion
Multinomial logit
title Comovement and contagion in commodity markets
title_full Comovement and contagion in commodity markets
title_fullStr Comovement and contagion in commodity markets
title_full_unstemmed Comovement and contagion in commodity markets
title_short Comovement and contagion in commodity markets
title_sort comovement and contagion in commodity markets
topic Commodity markets
Correlation
Comovement
Contagion
Multinomial logit
url https://www.tandfonline.com/doi/10.1080/23322039.2022.2064079
work_keys_str_mv AT donyabdulchalid comovementandcontagionincommoditymarkets
AT ranggahandika comovementandcontagionincommoditymarkets