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The Relationship between the Oil Prices and Stock Prices: An Application in BIST Chemical, Oil, Plastic Index

Author

Listed:
  • Melike Kurtaran elik

    (Vocational School of Tourism and Hospitality, Trabzon University, Turkey)

  • Zekiye Akta

    (Faculty of Business and Economics, Karadeniz Technical University, Turkey)

  • Ahmet Kurtaran

    (Faculty of Business and Economics, Karadeniz Technical University, Turkey)

  • Ayten Turan Kurtaran

    (Faculty of Health Sciences, Karadeniz Technical University, Turkey.)

Abstract

The purpose of this study is to examine the relationship between oil prices and stock prices. The study consists of a daily data set over the period between 03.12.2010 and 06.12.2017. Firstly, the relationship between the variables was measured by the Spearman s rank correlation coefficient. The result of the analysis found that there was a statistically significant negative correlation between oil prices and stock prices, and it was also identified that 15% of the changes in stock price were as result of changes in oil prices.

Suggested Citation

  • Melike Kurtaran elik & Zekiye Akta & Ahmet Kurtaran & Ayten Turan Kurtaran, 2019. "The Relationship between the Oil Prices and Stock Prices: An Application in BIST Chemical, Oil, Plastic Index," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 165-170.
    • Handle: RePEc:eco:journ2:2019-06-20
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    References listed on IDEAS

    as
    1. Abhay Abhyankar, Bing Xu, and Jiayue Wang, 2013. "Oil Price Shocks and the Stock Market: Evidence from Japan," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    2. Basher, Syed A. & Sadorsky, Perry, 2006. "Oil price risk and emerging stock markets," Global Finance Journal, Elsevier, vol. 17(2), pages 224-251, December.
    3. Mohamed El Hedi Arouri & Christophe Rault, 2012. "Oil Prices And Stock Markets In Gcc Countries: Empirical Evidence From Panel Analysis," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 17(3), pages 242-253, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Oil Prices; Stock Prices; Engle Granger Analysis;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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