English

A Regulated Market Under Sanctions: On Tail Dependence Between Oil, Gold, and Tehran Stock Exchange Index

Statistical Finance 2019-11-07 v1 General Economics Economics

Abstract

We demonstrate that the tail dependence should always be taken into account as a proxy for systematic risk of loss for investments. We provide the clear statistical evidence of that the structure of investment portfolios on a regulated market should be adjusted to the price of gold. Our finding suggests that the active bartering of oil for goods would prevent collapsing the national market facing international sanctions.

Keywords

Cite

@article{arxiv.1911.01826,
  title  = {A Regulated Market Under Sanctions: On Tail Dependence Between Oil, Gold, and Tehran Stock Exchange Index},
  author = {Abootaleb Shirvani and Dimitri Volchenkov},
  journal= {arXiv preprint arXiv:1911.01826},
  year   = {2019}
}