Asymmetric correlations in gold and other financial markets

C-Tier
Journal: Applied Economics
Year: 2016
Volume: 48
Issue: 46
Pages: 4419-4425

Authors (2)

T. Miyazaki (not in RePEc) S. Hamori (Yamato University)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

In this article, we implement a recently developed statistical method to test asymmetries in cross-asset correlations, focusing in particular on the gold market. Our empirical results provide evidence that gold exhibits asymmetric correlations with stocks and the U.S. dollar, but not with bonds. Furthermore, splitting the sample into three characteristic periods, we find that exceedance correlations exhibit substantial time variation even in similar market tensions for same pairs of assets. Our findings imply that investors and fund managers should take into account the asymmetric dependence structure, which depends on the upside or downside of the market.

Technical Details

RePEc Handle
repec:taf:applec:v:48:y:2016:i:46:p:4419-4425
Journal Field
General
Author Count
2
Added to Database
2026-01-25