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Balancing Portfolios with Metals: A Safe Haven for Green Energy Investors?

Author

Listed:
  • Rui Manuel Dias

    (Center for Advanced Studies in Management and Economics, University of Évora, 7000-812 Évora, Portugal)

  • Mariana Chambino

    (Instituto Politécnico de Setúbal, ESCE-Escola Superior de Ciências Empresariais, 2910-761 Setúbal, Portugal)

  • Nuno Teixeira

    (Instituto Politécnico de Setúbal, ESCE-Escola Superior de Ciências Empresariais, 2910-761 Setúbal, Portugal)

  • Paulo Alexandre

    (Instituto Politécnico de Setúbal, ESCE-Escola Superior de Ciências Empresariais, 2910-761 Setúbal, Portugal)

  • Paula Heliodoro

    (Instituto Politécnico de Setúbal, ESCE-Escola Superior de Ciências Empresariais, 2910-761 Setúbal, Portugal)

Abstract

This study investigates the relationship between energy metals and precious metals to assess their suitability as safe haven assets in clean energy investment portfolios. This study aims to conduct an effect analysis of the events that occurred during the years 2020 and 2022, characterized by substantial investments in the field of clean energy. The analysed period encompasses the period from 13 July 2018 to 11 July 2023. The study is carried out in multiple stages with the aim of investigating a highly tumultuous period in the global economy. To assess long-term relationships, the econometric methodology proposed by Gregory and Hansen will be employed. The research shows a positive association between energy metals (excluding nickel futures) and clean energy indexes, suggesting their potential as secure investments for green investors diversifying their portfolios. Additionally, the study confirms the reliability of precious metals, such as gold, silver, and platinum as safe havens for clean energy stock indexes. These findings highlight the stability that both energy and precious metals can offer within clean energy portfolios during market volatility, emphasizing their value in such investment strategies. In brief, this study affirms that energy and precious metals are invaluable pillars in the structure of clean energy portfolios, offering unwavering support during market turbulence.

Suggested Citation

  • Rui Manuel Dias & Mariana Chambino & Nuno Teixeira & Paulo Alexandre & Paula Heliodoro, 2023. "Balancing Portfolios with Metals: A Safe Haven for Green Energy Investors?," Energies, MDPI, vol. 16(20), pages 1-21, October.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:20:p:7197-:d:1264726
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    References listed on IDEAS

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