In Search of Risk Havens in the Global South—Interconnectedness Between Mining Stocks and Energy Commodity Future

Rabindra Nepal, Miklesh Prasad Yadav, Nidhi Malhotra, Ravinder Verma and Silky Vigg Kushwah

Emerging Markets Finance and Trade, 2025, vol. 61, issue 8, 2206-2223

Abstract: This article examines the decomposed connectedness of mining stocks of the Global South nations with energy commodity futures. We consider the major mining stocks of the Global South like Vale S.A. (Brazil), Hindustan Zinc (India), PT Bumi Resources (Indonesia), and China Shenhua Energy Co. (China) while crude oil futures represent the energy commodity futures. We consider daily observations extending from December 31, 2019, to November 30, 2023, for our empirical investigation. We employ R2 decomposed connectedness and find that the total connectedness index (TCI) is 62.30% which is attributed to evenly to contemporaneous interdependencies as well as lagged dynamics. We also find that the Indonesian stock (PT Bumi Resources) is a safe stock to mitigate the risk which is advisable to be held by investors for portfolio diversification. This study furnishes insight to investors, portfolio managers, and policy analysts.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/1540496X.2024.2420599 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:61:y:2025:i:8:p:2206-2223

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MREE20

DOI: 10.1080/1540496X.2024.2420599

Access Statistics for this article

More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().