Financialization, idiosyncratic information and commodity co-movements

A-Tier
Journal: Energy Economics
Year: 2021
Volume: 94
Issue: C

Authors (4)

Ma, Yan-Ran (not in RePEc) Ji, Qiang (Chinese Academy of Sciences) Wu, Fei (not in RePEc) Pan, Jiaofeng (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

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

Abstract

This paper seeks to explore the factors contributing to the return co-movement dynamics in the international commodity markets. We first adopt a minimum spanning tree (MST) characterized by a DCC-GARCH specification to depict the return co-movement among 21 commodities selected from the energy, agricultural and metal commodity markets. A connectedness network is then constructed to examine the contributions of both fundamentals and non-fundamental factors to the level of commodity return co-movement. The empirical results show that linkages across energy commodities are substantially stronger than among agricultural or metal commodities. Non-fundamental factors such as commodity market financialization and market sentiment play important roles in driving return co-movement over the sample period, though their impacts vary over time.

Technical Details

RePEc Handle
repec:eee:eneeco:v:94:y:2021:i:c:s0140988320304230
Journal Field
Energy
Author Count
4
Added to Database
2026-01-25