The relationship between WIG-subindexes: evidence from the Warsaw Stock Exchange

Evidence on links among the major Warsaw Stock Exchange subindexes using daily data from the period of 2011.03.01 to 2014.07.21 is provided in the paper. The empirical study for eleven WIG-sectoral subindexes with 844 observations was conducted by means of Regular Vine Copulas. The application of t...

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Main Authors: Henryk Gurgul, Robert Syrek
Format: Article
Language:English
Published: AGH UNIVERSITY PRESS 2015-02-01
Series:Managerial Economics
Online Access:https://journals.agh.edu.pl/manage/article/view/1367
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author Henryk Gurgul
Robert Syrek
author_facet Henryk Gurgul
Robert Syrek
author_sort Henryk Gurgul
collection DOAJ
description Evidence on links among the major Warsaw Stock Exchange subindexes using daily data from the period of 2011.03.01 to 2014.07.21 is provided in the paper. The empirical study for eleven WIG-sectoral subindexes with 844 observations was conducted by means of Regular Vine Copulas. The application of these copulas allowed us to identify the pairwise structure of the dependence of subindexes under study. The results confirm the leading role of the banking sector in the Polish economy. The dependence structure of the WIG-banking subindex and other subindexes is, in general, asymmetrical. The links between returns of the subindexes are more pronounced in the left tails; i.e., in the bear phase of financial markets. This study suggests the usefulness of Regular Vine Copulas in analyzing dependence structures of a number of financial time series.
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spelling doaj-art-d917b9feeb5042b4afbfcf2a5cb218322025-08-20T02:34:43ZengAGH UNIVERSITY PRESSManagerial Economics1898-11432353-36172015-02-0115210.7494/manage.2014.15.2.149The relationship between WIG-subindexes: evidence from the Warsaw Stock ExchangeHenryk GurgulRobert Syrek Evidence on links among the major Warsaw Stock Exchange subindexes using daily data from the period of 2011.03.01 to 2014.07.21 is provided in the paper. The empirical study for eleven WIG-sectoral subindexes with 844 observations was conducted by means of Regular Vine Copulas. The application of these copulas allowed us to identify the pairwise structure of the dependence of subindexes under study. The results confirm the leading role of the banking sector in the Polish economy. The dependence structure of the WIG-banking subindex and other subindexes is, in general, asymmetrical. The links between returns of the subindexes are more pronounced in the left tails; i.e., in the bear phase of financial markets. This study suggests the usefulness of Regular Vine Copulas in analyzing dependence structures of a number of financial time series. https://journals.agh.edu.pl/manage/article/view/1367
spellingShingle Henryk Gurgul
Robert Syrek
The relationship between WIG-subindexes: evidence from the Warsaw Stock Exchange
Managerial Economics
title The relationship between WIG-subindexes: evidence from the Warsaw Stock Exchange
title_full The relationship between WIG-subindexes: evidence from the Warsaw Stock Exchange
title_fullStr The relationship between WIG-subindexes: evidence from the Warsaw Stock Exchange
title_full_unstemmed The relationship between WIG-subindexes: evidence from the Warsaw Stock Exchange
title_short The relationship between WIG-subindexes: evidence from the Warsaw Stock Exchange
title_sort relationship between wig subindexes evidence from the warsaw stock exchange
url https://journals.agh.edu.pl/manage/article/view/1367
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