TY - GEN
T1 - The price-stock relationship in the copper market
T2 - Fourth International Conference COPPER 99 - COBRE 99
AU - Pincheira Brown, P. M.
PY - 1999
Y1 - 1999
N2 - The widely accepted inverse relationship between copper prices and stocks, has been commonly used by analysts to explain the behavior of the copper market and to forecast future copper prices. However, empirical data have not shown such a clear relationship between copper prices and stocks. Existing evidence only indicates a weak long-run relationship that vanishes in some periods. In this paper a simple comprehensive model is provided, which explains both parallel and opposite direction movements between prices and stocks. Former are explained mainly by stocks demand expansions-contractions while the latter are in essence due to increases in the supply curve. Furthermore, econometric estimations are provided, thus giving a powerful tool to forecast and explain price developments of the copper market.
AB - The widely accepted inverse relationship between copper prices and stocks, has been commonly used by analysts to explain the behavior of the copper market and to forecast future copper prices. However, empirical data have not shown such a clear relationship between copper prices and stocks. Existing evidence only indicates a weak long-run relationship that vanishes in some periods. In this paper a simple comprehensive model is provided, which explains both parallel and opposite direction movements between prices and stocks. Former are explained mainly by stocks demand expansions-contractions while the latter are in essence due to increases in the supply curve. Furthermore, econometric estimations are provided, thus giving a powerful tool to forecast and explain price developments of the copper market.
UR - https://www.scopus.com/pages/publications/0033489708
M3 - Conference contribution
AN - SCOPUS:0033489708
SN - 0873394356
T3 - 4th International Conference COPPER 99-COBRE 99
SP - 135
EP - 149
BT - 4th International Conference COPPER 99-COBRE 99
A2 - Eltringham, G.A.
A2 - Piret, N.L.
A2 - Sahoo, M.
A2 - Eltringham, G.A.
A2 - Piret, N.L.
A2 - Sahoo, M.
Y2 - 10 October 1999 through 13 October 1999
ER -