Quantifying information transfer among precious metals: A novel transfer entropy-based approach

Quantifying information transfer among precious metals: A novel transfer entropy-based approach | 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 Quantifying information transfer among precious metals: A novel transfer entropy-based approach Richard Eshun This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-8251097/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 This study looks at the asymmetric information flow between bivariate pairs of daily returns for gold, silver, platinum, and palladium from January 1, 2000, to December 31, 2024. In order to obtain robust estimates while accounting for nonlinear, non-parametric, and asymmetric correlations in bivariate returns series, we employ Shannon and Rényi entropy transfer techniques rather than the widely utilized Granger causality approach. The findings reveal that there was a mixed information flow in the interactions between the precious metals, with gold leading the way in information transmission. Higher integration was found at the higher scale (lower frequency) via the wavelet multiple correlation whiles the wavelet multiple cross correlation reveal insignificant spillover effects since localization occurred at the point of symmetry. Investors and policymakers should understand the importance of time-sensitive information flow for risk assessment and portfolio management, as well as the dynamic interrelationships across market. Precious Metals Information Flow Entropy Transfer Full Text Additional Declarations No competing interests reported. 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. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. 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-8251097","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":554681762,"identity":"4da51e9a-e82e-4b11-a6aa-e3a9d4d1ce87","order_by":0,"name":"Richard 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