Expected shortfall assessment in commodity (L)ETF portfolios with semi-nonparametric specifications

This paper studies the risk assessment of semi-nonparametric (SNP) distributions for leveraged exchange trade funds, (L)ETFs. We applied the SNP model with dynamic conditional correlations (DCC) and EGARCH innovations, and implement recent techniques to backtest Expected Shortfall (ES) to portfolios...

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Detalles Bibliográficos
Autores: Del Brio, E., Mora, A., Perote, J.
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2018
País:Colombia
Institución:Universidad de los Andes
Repositorio:Séneca: repositorio Uniandes
Idioma:inglés
OAI Identifier:oai:repositorio.uniandes.edu.co:1992/47080
Acceso en línea:http://hdl.handle.net/1992/47080
Access Level:acceso abierto
Palabra clave:Gram¿Charlier
DCC
Expected shortfall
Backtesting
Commodity ETF
Descripción
Sumario:This paper studies the risk assessment of semi-nonparametric (SNP) distributions for leveraged exchange trade funds, (L)ETFs. We applied the SNP model with dynamic conditional correlations (DCC) and EGARCH innovations, and implement recent techniques to backtest Expected Shortfall (ES) to portfolios formed by bivariate combinations of major (L)ETFs on metal (Gold and Silver) and energy (Oil and Gas) commodities. Results support that multivariate SNP-DCC model outperforms the Gaussian-DCC and provides accurate risk measures for commodity (L)ETFs.