This study analyzed the potential impact of the increased oil volatility on the industries and the global economy. Specifically, it separated the oil price fluctuations into positive and negative components, and model...This study analyzed the potential impact of the increased oil volatility on the industries and the global economy. Specifically, it separated the oil price fluctuations into positive and negative components, and modeled the return of industry portfolios with them. Next, the sensitivity of the airline industry to oil price was investigated to gauge the effectiveness of their hedging strategies, with the hope that the methodology can be extended to other industries. In addition, this paper explored the macroeconomic impact of oil price movements by examining the benchmarks such as GDP and CPI.展开更多
文摘This study analyzed the potential impact of the increased oil volatility on the industries and the global economy. Specifically, it separated the oil price fluctuations into positive and negative components, and modeled the return of industry portfolios with them. Next, the sensitivity of the airline industry to oil price was investigated to gauge the effectiveness of their hedging strategies, with the hope that the methodology can be extended to other industries. In addition, this paper explored the macroeconomic impact of oil price movements by examining the benchmarks such as GDP and CPI.
