Volatility Modeling for Spot and Futures of Crude Oil–Evidence from Pakistan.

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Date
2015
Journal Title
Journal ISSN
Volume Title
Publisher
Abasyn University Journal of Social Sciences.
Abstract
In this article, we study the volatility of Spots and Futures of Crude Oil using daily data from the period 2010-2013. We examine both the Crude Oil Spots and Crude Oil Futures traded on the Pakistan Mercantile Exchange. Our main findings suggest that (1) shocks tend to persist over a long period of time for both Crude Oil Spots and Crude Oil Futures; and (2) shocks have asymmetric effect on the volatility. Hence our findings indicate that behavior of Crude Oil Spots prices and Crude Oil Future prices tends to vary over time.
Description
Keywords
Finance, Asymmetry, Crude Oil, EGARCH, Shock Persistence, Volatility
Citation
Rafay, A., Gilani, U. J., Naeem, M. A. B., & Ejaz, M. (2015). Volatility Modeling for Spot and Futures of Crude Oil–Evidence from Pakistan. Abasyn University Journal of Social Sciences, 8(2), 298‐309. (Abdul Rafay, Usman Javed Gilani, Muhammad Abu Bakar Naeem and Maham Ijaz) (HEC Recognized X Category)