Do gold mining stocks behave like gold or equities? Evidence from the UK and the US
Arif Dar (),
Niyati Bhanja () and
International Review of Economics & Finance, 2019, vol. 59, issue C, 369-384
In this paper, we explore if gold mining stocks behave like gold or equities in the United Kingdom and the United States. We do this by testing the dynamic interaction of gold mining stock with gold and equities, both over time and across different time horizons. It is shown that gold mining stocks are positively but not perfectly correlated with the gold at some time horizons and time periods; however, they are either loosely or not correlated with equities over different time horizons. Broadly, it appears that gold mining stocks behave more like gold. The results drawn have important implications for the hedge, diversifier, and safe haven properties of gold and gold mining stocks for multi-horizon portfolio managers.
Keywords: Gold mining stock; Hedge; Safe haven; Gold; Equities; Time horizons (search for similar items in EconPapers)
JEL-codes: C14 G12 G14 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:59:y:2019:i:c:p:369-384
Access Statistics for this article
International Review of Economics & Finance is currently edited by H. Beladi and C. Chen
More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().