IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v28y2021i2p153-160.html

Hedging the downside risk of commodities through cryptocurrencies

Author

Listed:
  • Muhammad Abubakr Naeem
  • Saqib Farid
  • Faruk Balli
  • Syed Jawad Hussain Shahzad

Abstract

Today, commodities are exposed to ever-increasing price volatilities due to extreme market uncertainties linked with financialization. The paper addresses a timely question of whether cryptocurrencies are hedge and safe-haven for commodities. We focus on this literature gap by using individual commodities from four groups, including metal, agriculture, precious metal, and energy. Further, we also consider four major cryptocurrencies, namely, Bitcoin, Ethereum, Litecoin, and Ripple for our analysis. Our findings show the functional role of cryptocurrencies as hedge and safe-haven for individual commodities. Moreover, the underlying properties are persistent during the crisis period.

Suggested Citation

  • Muhammad Abubakr Naeem & Saqib Farid & Faruk Balli & Syed Jawad Hussain Shahzad, 2021. "Hedging the downside risk of commodities through cryptocurrencies," Applied Economics Letters, Taylor & Francis Journals, vol. 28(2), pages 153-160, January.
    • Handle: RePEc:taf:apeclt:v:28:y:2021:i:2:p:153-160
    DOI: 10.1080/13504851.2020.1739609
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2020.1739609
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2020.1739609?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:28:y:2021:i:2:p:153-160. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.