Common Long-Memory Components and Short-Term Volatility Spillovers of Copper Future Prices in Domestic and Foreign Markets

Common Long-Memory Components and Short-Term Volatility Spillovers of Copper Future Prices in Domestic and Foreign Markets


Author:Yi Fang Journal:Journal of Applied Statistics and Management(Chinese)  Date:2008(2)

Keywords Copper future prices; long-memory; volatility spillover

Abstract

The essay focuses empirical study on copper future prices in domestic and foreign markets, which distinguishes common long-memory components and short-term volatility spillovers of prices in different markets. It uses information share model and permanent-transitory model to isolate common long-memory components from different copper future markets, and attains contributions of implicit efficient price. Furthermore, it dose go deep into the volatility spillovers of copper future prices by BEKK model. Especially, we define volatility-spillovers item in different variables, and we measure the volatility spillovers in markets based on the item. According to the results, we find there are tight ties in copper future prices between domestic market and foreign market. The foreign copper future price has larger driving force in the long run and in the short run.


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