Abstract
We employ a novel framework to measure the asymmetric nexus between the cryptocurrency market and the carbon futures market based on different market conditions. Specifically, we use a quantile-on-quantile regression (QQR) approach to explore the correlation between cryptocurrencies (Bitcoin, Ethereum, and Ripple) and European Union Allowance (EUA) futures. We find that there is an asymmetric relationship between markets that is affected by different cryptocurrencies and market conditions. Overall, Bitcoin or Ethereum are positively correlated with the carbon market, while the results of Ripple are more complex. Under certain conditions, EUA futures can be a better hedge against cryptocurrency risk.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
