Publicação

Time and frequency volatility spillovers among commodities: Evidence from pre and during the Russia‑Ukraine war

Ver documento

Detalhes bibliográficos
Resumo:This paper studies the volatility spillovers among commodities in both magnitude and timescale before and after the Russia-Ukraine war. We adopt the Diebold and Yilmaz (Int J Forecast 28:57–66, 2012) and the Baruník and Křehlík (J Financ Economet 16:271–296, 2018) method based the 15-min trading data. The results show that the war increases total volatility spillover from 35.54% to 49.00%. Although total spillover is the largest within a day, net spillovers of some commodities are stronger in long term. More importantly, the war increases the importance of precious metals, oil & fats, crops, and agricultural products in different time–frequency domains. The volatility spillover of precious metals as safe-haven assets within one week increases the most. The role of the oil & fats sector changes from a net receiver to a risk transmitter. Meanwhile, crops and agricultural products sectors dominate the overall spillover in the long-term during the ongoing war period. Furthermore, the time-varying results suggest that the impact of the war is durable in the long term.
Autores principais:Chen, Yunfei
Outros Autores:Jiang, Wei
Assunto:Russia-Ukraine War Commodity Volatility Spillovers
Ano:2024
País:Portugal
Tipo de documento:artigo
Tipo de acesso:acesso restrito
Instituição associada:Universidade de Lisboa
Idioma:inglês
Origem:Repositório da Universidade de Lisboa
Descrição
Resumo:This paper studies the volatility spillovers among commodities in both magnitude and timescale before and after the Russia-Ukraine war. We adopt the Diebold and Yilmaz (Int J Forecast 28:57–66, 2012) and the Baruník and Křehlík (J Financ Economet 16:271–296, 2018) method based the 15-min trading data. The results show that the war increases total volatility spillover from 35.54% to 49.00%. Although total spillover is the largest within a day, net spillovers of some commodities are stronger in long term. More importantly, the war increases the importance of precious metals, oil & fats, crops, and agricultural products in different time–frequency domains. The volatility spillover of precious metals as safe-haven assets within one week increases the most. The role of the oil & fats sector changes from a net receiver to a risk transmitter. Meanwhile, crops and agricultural products sectors dominate the overall spillover in the long-term during the ongoing war period. Furthermore, the time-varying results suggest that the impact of the war is durable in the long term.