Hydrogen in financial markets: A hybrid asset at the crossroads of technology and clean energy

Hydrogen is increasingly presented as a key solution for decarbonization in the context of the energy transition. This paper investigates how financial markets perceive hydrogen-related companies and whether these assets display distinct financial behaviors compared to other clean energy sectors—namely solar, wind, and renewable energy producers. Using daily data and a multi-faceted econometric approach, accounting for non-linearities, long-run dynamics, and time-varying correlations, we analyze both returns and dynamic correlations of hydrogen stocks relative to other energy segments. Our results show that hydrogen indices behave more like speculative technological assets than mature renewable energy sources. Their returns are more sensitive to financial stress indicators (e.g., the VIX) and to the performance of technology stocks. Dynamic correlations with other energy sectors are shaped by macroeconomic conditions: oil prices act as a synchronizing factor, while gold increases returns but reduces correlations. In contrast, geopolitical and financial uncertainty tends to increase comovements, reflecting flight-to-safety behavior. These findings highlight hydrogen’s hybrid identity in financial markets—volatile, innovation-driven, and not yet integrated into the traditional renewable asset class, raising implications for both investors and policymakers regarding the financial interconnectedness and strategic support of the hydrogen sector within the broader clean energy transition.