Long Memory and Time Varying Hedging Opportunities Between Clean Energy, Crude Oil and Technology Sector

Long Memory and Time Varying Hedging Opportunities Between Clean Energy, Crude Oil and Technology Sector | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Long Memory and Time Varying Hedging Opportunities Between Clean Energy, Crude Oil and Technology Sector Tayfun YILMAZ, İsmail ÇELİK, Feyyaz Zeren, Sinan ESEN This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-307489/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract In this paper, long memory and time varying hedging opportunities between clean energy, West Texas Intermediate (WTI) crude oil and technology share prices were analyized between 3 May 2005-16 October 2019. The relationships were investigated by DECO-FIGARCH model with daily frequencies. According to findings, it is understood that volatility clusters were determined in crude oil, alternate source energy and technology returns. Due to this useful information shocks reach to all three investment tools and being eliminated at hyperbolic speed, also the volatility spillover lasted for a long time. The most important finding of the research is that long position risks arising in both clean energy and technology sectors can be effectively and efficiently hedged with WTI futures contracts. On the other hand, it was determined that WTI can be added to the portfolio in order to reduce the risks of portfolio to be established with clean energy and technology sector. Environmental Engineering Environmental Policy Long Memory Time Varying Hedging Opportinties Clean Energy WTI Technology Sector. Figures Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Full Text Highlights Our paper’s highlights are as following; The volatility clusters were determined in clean energy, crude oil and technology returns The long position risks arising in both clean energy and technology sectors can be effectively and efficiently hedged with WTI futures contracts. WTI can be added to the portfolio in order to reduce the risks of portfolio to be established with clean energy and technology sector. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-307489","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":17665057,"identity":"abbfa244-1ed7-4de0-9dfb-f8f400e75e5f","order_by":0,"name":"Tayfun YILMAZ","email":"","orcid":"","institution":"Burdur Mehmet Akif Ersoy Universitesi","correspondingAuthor":false,"submittingAuthor":false,"prefix":"","firstName":"Tayfun","middleName":"","lastName":"YILMAZ","suffix":""},{"id":17665058,"identity":"8907801b-be03-4fd4-bc9f-8503c5ef6cf0","order_by":1,"name":"İsmail ÇELİK","email":"","orcid":"","institution":"Burdur Mehmet Akif Ersoy 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sector.\u003c/em\u003e\u003c/li\u003e\n\u003c/ul\u003e"}],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":false,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Long Memory, Time Varying Hedging Opportinties, Clean Energy, WTI, Technology Sector.","lastPublishedDoi":"10.21203/rs.3.rs-307489/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-307489/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eIn this paper, long memory and time varying hedging opportunities between clean energy, West Texas Intermediate (WTI) crude oil and technology share prices were analyized between 3 May 2005-16 October 2019. 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