Tail Dependence of Liquidity and Volatility in Carbon Futures Market: Evidence From EU ETS DOI
Xiaohan Cai, Bo Yan

Managerial and Decision Economics, Journal Year: 2025, Volume and Issue: unknown

Published: April 28, 2025

ABSTRACT This study constructs liquidity and volatility indicators based on the four phases of EU ETS analyses tail dependence using Copula models. The results indicate strong between in fourth phase. Amihud illiquidity ratio combined with stochastic model identifies high risks during scarcity, while Gibbs measure low risks. robustness is tested by classifying different periods structural breaks assessing dependence, applying machine learning algorithms to remove outliers before measuring dependence.

Language: Английский

Tail Dependence of Liquidity and Volatility in Carbon Futures Market: Evidence From EU ETS DOI
Xiaohan Cai, Bo Yan

Managerial and Decision Economics, Journal Year: 2025, Volume and Issue: unknown

Published: April 28, 2025

ABSTRACT This study constructs liquidity and volatility indicators based on the four phases of EU ETS analyses tail dependence using Copula models. The results indicate strong between in fourth phase. Amihud illiquidity ratio combined with stochastic model identifies high risks during scarcity, while Gibbs measure low risks. robustness is tested by classifying different periods structural breaks assessing dependence, applying machine learning algorithms to remove outliers before measuring dependence.

Language: Английский

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