JOURNAL OF ACCOUNTING AND FINANCE
Cointegration and Causality Between the Platinum Market and the Palladium Market
Author(s): Chung Baek, Larry Fogelberg, Haksoon Kim
Citation: Chung Baek, Larry Fogelberg, Haksoon Kim, (2018) "Cointegration and Causality Between the Platinum Market and the Palladium Market", Journal of Accounting and Finance, Vol. 18, ss. 4, pp.87-94
Article Type: Research paper
Publisher: North American Business Press
Abstract:
Despite the fact that platinum and palladium are two out of four major precious metals and become more and more attractive as investment vehicles, there has been little research on these two markets in terms of their times series characteristics. We examine cointegrating and causal relationships between the platinum market and the palladium market. While we identify no cointegration between these two
markets, we find that palladium returns and volatilities Granger-cause platinum returns and volatilities.
Our findings are expected to provide critical information to financial market participants in terms of
portfolio or asset management.