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  • 标题:Analyzing Dependence Structure of Equity, Bond and Money Markets by Using Time-Varying Copulas
  • 本地全文:下载
  • 作者:Cuong Nguyen ; Tristan Nguyen
  • 期刊名称:International Journal of Economics and Finance
  • 印刷版ISSN:1916-971X
  • 电子版ISSN:1916-9728
  • 出版年度:2014
  • 卷号:6
  • 期号:3
  • 页码:37
  • DOI:10.5539/ijef.v6n3p37
  • 出版社:Canadian Center of Science and Education
  • 摘要:

    In this essay, we analyze the dependence structures of equity, bond and money markets in Australia, the United States as well as the linkages between the two countries. The dependence structures have become more important for investors, risk managers and regulatory policy makers during the current period of financial crisis. Especially investors should be aware of the dependence structures which show the co-movement patterns between different markets in order to diversify and reduce the risks of their portfolios. To capture the structure linkages between different markets, we propose the combination of empirical distributions and time- varying copula models. Furthermore, we show an effective and informative way to analyze dependence between variables, especially to provide a better understanding of the co-movements of financial variables as well as the risks associated with dependence structures among them. The empirical findings provide some important implications of a wide range of areas related to investment in Australian and US financial markets.

     

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