Hedging crude oil using refined product: A regime switching asymmetric DCC approach

A-Tier
Journal: Energy Economics
Year: 2014
Volume: 46
Issue: C
Pages: 472-484

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In this paper, we explore the strategy on hedging crude oil using refined product. We develop a regime switching asymmetric DCC (RS-ADCC) model by taking into account both of regime switching and asymmetry in correlations. Our out-of-sample findings indicate that RS-ADCC displays greater hedging effectiveness than some conventional multivariate GARCH. Heating oil can better hedge crude oil than gasoline.

Technical Details

RePEc Handle
repec:eee:eneeco:v:46:y:2014:i:c:p:472-484
Journal Field
Energy
Author Count
3
Added to Database
2026-01-29