Abstract
This paper investigates the dynamic interaction between energy ETF accessibility and stock market sentiment through the lens of resilience during the post COVID-19 pandemic period. We find that they tend to positively co-move in the long run. Adverse exogenous shocks on one of them not only have a persistent impact on itself but also cause non-diminish damage to the other. Compared to stock market sentiment resilience, energy ETF accessibility resilience is more constrained by the long-run co-movement. The co-movement is not significantly reshaped by possible structural time-breaks or Markovian regime shifts. Further exploration based on wavelet coherence analysis provides evidence for a stable and even gradually strengthening positive coherence between the two types of resilience in a volatile environment. Accordingly, our findings can offer valuable insights for financial regulators to achieve their designed objectives in the secondary markets of energy and stocks.
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