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The price-stock relationship in the copper market: A surprising approach

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Resumen

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.

Idioma originalInglés
Título de la publicación alojada4th International Conference COPPER 99-COBRE 99
EditoresG.A. Eltringham, N.L. Piret, M. Sahoo, G.A. Eltringham, N.L. Piret, M. Sahoo
Páginas135-149
Número de páginas15
EstadoPublicada - 1999
Publicado de forma externaSí
EventoFourth International Conference COPPER 99 - COBRE 99 - Phoenix, AZ, Estados Unidos
Duración: 10 oct 1999 → 13 oct 1999

Serie de la publicación

Nombre4th International Conference COPPER 99-COBRE 99

Conferencia

ConferenciaFourth International Conference COPPER 99 - COBRE 99
País/TerritorioEstados Unidos
CiudadPhoenix, AZ
Período10/10/99 → 13/10/99

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