The value of information in the presence of futures markets

Article Abstract:

Information plays a critical role in determining futures prices, hedging and speculation. For instance, economic agents need information on random economic parameters before making decisions on production and level of engagement in futures trading. Evaluating the distribution of the relevant random variable also employs economic signals. In some cases, however, a higher amount of information from each economic signal may lead to an equilibrium which is less beneficial, owing to a widespread observation of this signal.

Evaluation, Speculation, Hedging (Finance), Economic indicators

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Volume relationships among types of traders in the financial futures market

Article Abstract:

Coincident relationships among the trading groups may be established but information about past trading volumes is only significant for only a few days. The cases of MMI and Muni contracts, however, suggested substantial correlations among the groups after several lags. The sequential arrival of information hypothesis is supported by these findings. The hypothesis claims that a trading group will conduct transactions on data given by another group.

Models, Futures, Sequential processing

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Energy shocks and financial markets

Article Abstract:

Returns on oil futures are not correlated with stock market returns, except oil stocks, upon examination of the lead-lag relationship of the two markets during the 1980s. The finding suggests the option of using oil futures in portfolio diversification. Furthermore, data from the oil futures market can be used as basis for investing in oil stocks. The vector autoregressive approach was used in the examination.

Securities Exchanges, Stock-exchange, Stock exchanges, Exchanges

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