Unearthing the Potential: Energy Metals as Hedging Assets in Portfolio Rebalancing Strategies
Unearthing the Potential: Energy Metals as Hedging Assets in Portfolio Rebalancing Strategies

Author(s): Rui Dias, Mariana Chambino, Paulo Alexandre
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Events of 2020 and 2022; Clean energy stocks; Energy metals; Coverage assets
Summary/Abstract: This article analyzes energy metals, specifically Aluminum (MAL3), nickel futures (NICKELc1), and copper futures (HGU3), concerning 3 clean energy indexes: the S&P Global Clean Energy Index (SPGTCLEN), the Nasdaq Clean Edge Green Energy (CEXX), and the WilderHill Clean Energy Index (ECO). It focuses on a significant period during which investments in clean energy increased significantly, with capital allocations tripling from the previous decade. The study’s findings are of great significance, given the recent surge in clean energy investments. As the world increasingly embraces cleaner energy sources, understanding how these assets relate to clean energy indexes becomes crucial for investors navigating this dynamic landscape. Moreover, the study’s relevance is underscored by recurring market uncertainty, making it a valuable resource for investors seeking to make informed decisions and manage portfolio risks in an era marked by economic uncertainty, policy shifts, and environmental concerns. This work contributes to academic discourse and has practical implications for financial markets

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