Mutual Influence of Exchange Assets: Analysis and Estimation

Banks and Bank Systems, Volume 6, Issue 2, 2011

6 Pages Posted: 21 Oct 2013

See all articles by Serhiy Kozmenko

Serhiy Kozmenko

LLC "CPC "Business Perspectives"

Oleksiy Plastun

Sumy State University

Date Written: May 15, 2011

Abstract

This paper examines the dynamic of prices for different exchange assets in relation to the dynamics of other exchange instruments. The analysis shows that in certain periods there exists a strong connection between the exchange assets (direct or indirect) but it is rather unstable.

The understanding of such dependencies allows to predict the market price changes. The coefficient of correlation can act as a measure of convergence or divergence of two “equal” assets. For example, a strong positive correlation between the two exchange assets lead to conclusion that in the case of a big movement in one asset we can wait for equivalent changes in other exchange asset.

Keywords: exchange assets, correlation analysis, forecast, price dynamic analysis, prediction, market “focus”

JEL Classification: G10, G12

Suggested Citation

Kozmenko, Serhiy and Plastun, Oleksiy, Mutual Influence of Exchange Assets: Analysis and Estimation (May 15, 2011). Banks and Bank Systems, Volume 6, Issue 2, 2011, Available at SSRN: https://ssrn.com/abstract=2341605

Serhiy Kozmenko (Contact Author)

LLC "CPC "Business Perspectives" ( email )

10 H. Skovoroda lane
Sumy, 40022
Ukraine

Oleksiy Plastun

Sumy State University ( email )

Rymskyi-Korsakov str., 2
Sumy, 40000
Ukraine

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