![]() The findings confirm that the implied volatility indices of gold and silver exhibit the best hedging tool against SRIs while oil is the best hedging tool for C&RTE. ![]() ![]() The findings exhibit a strong ability of volatility indices to hedge risks associated with SRIs and C&RTE investments as asymmetric-GARCH confirms that volatility indices have a negative correlation with most of the socially responsible and clean energy and technology equity indices. To uncover the spillover and the risk transmission, we employ the approach of Dynamic conditional correlation (DCC-GARCH) along with the Asymmetric DCC-GARCH and VAR-GARCH. In view of this, considering the rise of Socially Responsible Investments (SRI) and the Clean-Renewable energy & Clean-Technology energy (C&RTE) asset classes, the objective of this research is to examine risk transmission and the portfolio diversification prospects across the SRI, C&RTE, and the implied volatility indices (VIX) of major commodities (oil, silver, and the gold). Public utilities and companies engaged in nuclear energy are also excluded.Īrdour Global Indexes is in negotiations with a number of exchanges and investment management firms in the US and Europe to offer and list investment and risk management products on the indexes.ĭetailed information, including constituent data, rules and price information, on the AGI family of alternative energy indexes is available at the following website.The interconnectedness and high integration among the global markets have reduced the portfolio diversification opportunities of international investors. Says Nasdeo, “The AGI provides a pure indication of industry performance because it includes only ‘pure play’ companies whose sole purpose is alternative energy.” Large cap diversified companies such as General Electric and British Petroleum are excluded from the index because their alternative energy businesses exert relatively insignificant influences on their share price performance. The Ardour Global Index is also a “pure-play” index and includes only companies principally engaged in the alternative energy business. So far this year, the AGI has risen over 40%, reflecting surging interest in the sector caused by high energy prices, security concerns and environmental issues, as well as improving company fundamentals. The Ardour Global Alternative Energy Indexes were designed to serve as fair, impartial and transparent measures of the performance of the alternative energy industry. ![]() The capitalization weighted, float-adjusted family of indexes incorporates companies engaged in five primary alternative energy sectors: alternative energy resources (including wind, solar, ethanol bio-mass and others), distributed generation, environmental controls, energy efficiency and enabling technologies. A global index is the best way to capture the full breadth of opportunity.” Says Walter Nasdeo, Consulting Analyst to Ardour Global Indexes, “Alternative energy is a truly global business, where technologies, regulations and the impulses driving the sector differ from one country to the next. Dow Jones Indexes serves as calculation agent for the indexes. The index includes 74 stocks, and has related sub-indexes covering North America (Ticker: AGINA) and Europe (Ticker: AGIEM). Ardour Capital launched The Ardour Global Index (Ticker: AGIGL) today, a global alternative energy stock index.
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