Extreme downside risk co-movement in commodity markets during distress periods. A Multidimensional scaling approach

We analyze the co-movement of a number of commodity markets in extreme financial episodes worldwide. More specifically, we provide extreme downside risk comovement maps of these markets during six recent distress periods. We follow an expected shortfall-multidimensional scaling approach, which allow...

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Detalles Bibliográficos
Autores: Fernández-Avilés Calderón, Gema, Montero Lorenzo, José María, Sanchís Marco, Lidia
Tipo de recurso: artículo
Fecha de publicación:2020
País:España
Institución:Universidad de Castilla-La Mancha
Repositorio:RUIdeRA. Repositorio Institucional de la UCLM
OAI Identifier:oai:ruidera.uclm.es:10578/40509
Acceso en línea:https://www.tandfonline.com/doi/abs/10.1080/1351847X.2020.1724171
https://hdl.handle.net/10578/40509
Access Level:acceso abierto
Palabra clave:Commodity markets
Co-movement
Expected shortfall
Extreme downside risk co-movement map
Multidimensional scaling
Descripción
Sumario:We analyze the co-movement of a number of commodity markets in extreme financial episodes worldwide. More specifically, we provide extreme downside risk comovement maps of these markets during six recent distress periods. We follow an expected shortfall-multidimensional scaling approach, which allows for an easy classification of markets according to their dynamics in risky episodes. No clear risk comovement patterns are observed, nor spillover effects are detected. Financialization and speculation might have played some role in the dynamics of price and risk only in food commodity markets during the oil price increase 2007–2008.