Returns in US copper companies the face of the volatility and stringency of COVID-19

Boris Pastén, Pablo Tapia and Jorge Sepúlveda

MPRA Paper from University Library of Munich, Germany

Abstract: Copper plays an important role in the production of technology and portfolios, yet it still faces the consequences of COVID-19. The financial literature that includes copper does so together with other commodities, resulting in reduced coverage of the determinants of this metal, leaving questions. We will use linear and VAR-X models to relate the financial market volatility (VIX) and the management of the spread of COVID-19 (stringency) to the returns of copper companies in the United States. We found evidence that the VIX and stringency have a negative effect on the returns of these companies, with Chile’s stringency being the most negative. This evidence suggests that investors seem to prioritize their actions on copper production (Chile), and more on volatility, if present. This may help to better understand investors’ actions in the face of such scenarios.

Keywords: Mining; Copper; COVID-19; Lockdown Stringency; Uncertainty. (search for similar items in EconPapers)
JEL-codes: G11 G12 G15 G18 (search for similar items in EconPapers)
Date: 2022-03-28
New Economics Papers: this item is included in nep-ore and nep-rmg
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:112574

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