Financial market risks and the hedging powers of unconventional assets under different conditions
The global financial ecosystem has become increasingly precarious for investors in the face of diverse risks such as macroeconomic, policy uncertainty, geopolitical, and systemic risks. This study examines hedging these risks with alternative classes of unconventional assets; clean stocks, precious...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2025-12-01
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| Series: | Journal of Applied Economics |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/15140326.2025.2522129 |
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| author | Idris A. Adediran Olajide O. Oyadeyi Olayode W. Agboola Kofoworola H. Raji Habeeb F. Ayoade |
| author_facet | Idris A. Adediran Olajide O. Oyadeyi Olayode W. Agboola Kofoworola H. Raji Habeeb F. Ayoade |
| author_sort | Idris A. Adediran |
| collection | DOAJ |
| description | The global financial ecosystem has become increasingly precarious for investors in the face of diverse risks such as macroeconomic, policy uncertainty, geopolitical, and systemic risks. This study examines hedging these risks with alternative classes of unconventional assets; clean stocks, precious metals, Shariah-compliant stocks, and REITs, as contribution to the literature that contains fragmented analysis of individual assets or specific risks. The study employs a generalized least squares estimator that carefully eliminates salient econometric problems alongside quantile analysis using daily data spanning 5/17/2010 to 12/16/2024. The striking findings therefrom are: (i) precious metals, especially gold, are the best hedging candidates except against geopolitical risk where clean stocks come in to provide cover; (ii) analyses of quantiles provide fresh insights that indicate that most of the hedging powers of the assets are found during bearish market condition. The study accentuates the use of gold for portfolio diversification and for keeping foreign reserves. |
| format | Article |
| id | doaj-art-db6a2ccc999c4a19ad5bf5d70bc15211 |
| institution | Matheson Library |
| issn | 1514-0326 1667-6726 |
| language | English |
| publishDate | 2025-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Journal of Applied Economics |
| spelling | doaj-art-db6a2ccc999c4a19ad5bf5d70bc152112025-07-01T14:37:27ZengTaylor & Francis GroupJournal of Applied Economics1514-03261667-67262025-12-0128110.1080/15140326.2025.2522129Financial market risks and the hedging powers of unconventional assets under different conditionsIdris A. Adediran0Olajide O. Oyadeyi1Olayode W. Agboola2Kofoworola H. Raji3Habeeb F. Ayoade4Centre for Econometrics and Applied Research, Ibadan, NigeriaSchool of Business, Regent College, London, UKDepartment of Analysis of Business Problems and Business Ethics, Lagos Business School, Pan-Atlantic Univeristy, Lagos, NigeriaCentre for Econometrics and Applied Research, Ibadan, NigeriaCentre for Econometrics and Applied Research, Ibadan, NigeriaThe global financial ecosystem has become increasingly precarious for investors in the face of diverse risks such as macroeconomic, policy uncertainty, geopolitical, and systemic risks. This study examines hedging these risks with alternative classes of unconventional assets; clean stocks, precious metals, Shariah-compliant stocks, and REITs, as contribution to the literature that contains fragmented analysis of individual assets or specific risks. The study employs a generalized least squares estimator that carefully eliminates salient econometric problems alongside quantile analysis using daily data spanning 5/17/2010 to 12/16/2024. The striking findings therefrom are: (i) precious metals, especially gold, are the best hedging candidates except against geopolitical risk where clean stocks come in to provide cover; (ii) analyses of quantiles provide fresh insights that indicate that most of the hedging powers of the assets are found during bearish market condition. The study accentuates the use of gold for portfolio diversification and for keeping foreign reserves.https://www.tandfonline.com/doi/10.1080/15140326.2025.2522129Precious metalsclean stocksIslamic stockshedgingC22C51 |
| spellingShingle | Idris A. Adediran Olajide O. Oyadeyi Olayode W. Agboola Kofoworola H. Raji Habeeb F. Ayoade Financial market risks and the hedging powers of unconventional assets under different conditions Journal of Applied Economics Precious metals clean stocks Islamic stocks hedging C22 C51 |
| title | Financial market risks and the hedging powers of unconventional assets under different conditions |
| title_full | Financial market risks and the hedging powers of unconventional assets under different conditions |
| title_fullStr | Financial market risks and the hedging powers of unconventional assets under different conditions |
| title_full_unstemmed | Financial market risks and the hedging powers of unconventional assets under different conditions |
| title_short | Financial market risks and the hedging powers of unconventional assets under different conditions |
| title_sort | financial market risks and the hedging powers of unconventional assets under different conditions |
| topic | Precious metals clean stocks Islamic stocks hedging C22 C51 |
| url | https://www.tandfonline.com/doi/10.1080/15140326.2025.2522129 |
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