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Returns in US copper companies the face of the volatility and stringency of COVID-19

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  • Pastén, Boris
  • Tapia, Pablo
  • Sepúlveda, Jorge

Abstract

Copper plays an important role in the production of technology and portfolios, yet it still faces the consequences of COVID-19. The financial literature that includes copper does so together with other commodities, resulting in reduced coverage of the determinants of this metal, leaving questions. We will use linear and VAR-X models to relate the financial market volatility (VIX) and the management of the spread of COVID-19 (stringency) to the returns of copper companies in the United States. We found evidence that the VIX and stringency have a negative effect on the returns of these companies, with Chile’s stringency being the most negative. This evidence suggests that investors seem to prioritize their actions on copper production (Chile), and more on volatility, if present. This may help to better understand investors’ actions in the face of such scenarios.

Suggested Citation

  • Pastén, Boris & Tapia, Pablo & Sepúlveda, Jorge, 2022. "Returns in US copper companies the face of the volatility and stringency of COVID-19," MPRA Paper 112574, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:112574
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    References listed on IDEAS

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    More about this item

    Keywords

    Mining; Copper; COVID-19; Lockdown Stringency; Uncertainty.;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

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