On the nexus between constituents and global energy commodities: an asymmetric analysis

The study examines the nexus between global energy commodity and its constituent across market conditions using the quantile regression approaches. We found that the positive effect of global energy commodity on its constituents was stronger relative to the feedback effect from the constituents. It is pertinent to hedge against fluctuations in the energy commodities using the global energy commodity as an appropriate hedged asset with the required hedging instrument.