Related Experiment Video
Updated: Aug 1, 2025
13:04
Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods
Published on: September 19, 2012
12.2K
Information flow dynamics between geopolitical risk and major asset returns
Zaghum Umar1,2, Ahmed Bossman3, Sun-Yong Choi4
1College of Business, Zayed University, Abu Dhabi, United Arab Emirates.
Plos One
|April 25, 2023
Summary
Geopolitical risk (GPR) impacts financial markets differently across time scales. While crude oil and Russian equity react oppositely in the short term, GPR information increases overall market risk in the medium to long term.
Area of Science:
- Economics
- Financial Markets
- Geopolitics
Background:
- Geopolitical risk (GPR) significantly influences global financial markets.
- Understanding these information flows is crucial for market participants.
- The Russian-Ukrainian conflict serves as a critical case study.
Purpose of the Study:
- To quantify information flows between geopolitical risk and global financial assets.
- To analyze these dynamics across different time scales (short, medium, long term).
- To investigate the impact of the Russian-Ukrainian conflict on financial assets.
Main Methods:
- Utilized transfer entropy to measure information flow.
- Employed the Iterative Complete Ensemble Empirical Mode Decomposition with Adaptive Noise (I-CEEMDAN) framework.
- Analyzed multi-term scale information dynamics.
Main Results:
- Short-term: Crude oil and Russian equity exhibit opposing responses to GPR.
- Medium and Long-term: GPR information demonstrably increases financial market risk.
- Long-term: Evidence supports the efficiency of financial asset markets.
Conclusions:
- GPR's impact on financial markets is time-dependent.
- Investors and policymakers must consider GPR's evolving influence.
- Market efficiency is observable on longer time horizons.
Related Concept Videos
01:27Psychoneuroimmunology: Cardiovascular Disease
58
Psychoneuroimmunology (PNI) is a multidisciplinary field that examines how psychological factors, particularly stress, interact with the immune system and impact physical health. Research in PNI has shown that chronic or traumatic stress can disrupt both the hypothalamic-pituitary-adrenal axis and the sympathetic nervous system. These disruptions contribute to serious health conditions, including cardiovascular diseases.
A key area of focus in PNI is the relationship between stress and coronary...
A key area of focus in PNI is the relationship between stress and coronary...
58
01:17Design Example: Analyzing Capacity Contours for Flood Risk Assessment
82
Flood risk assessment involves careful planning and analysis to ensure the safety of communities near water retention structures. Capacity contours are a vital tool in this process, as they illustrate the potential spread of water at specific levels in a given area. In the context of building a bund across a small valley, these contours play a critical role in evaluating the safety of nearby residential areas.In this example, the bund is intended to store stormwater in the valley. The engineers...
82
01:29Applications of GIS: Disaster Management and Emergency Response
121
Geographic Information System (GIS) technology is essential for risk identification, action prioritization, and resource optimization in critical situations like flooding and earthquakes. By integrating spatial and demographic data, GIS provides a comprehensive framework for emergency response.GIS integrates data layers, like rainfall intensity, topography, elevation profiles, and river levels, to model high-risk flood zones. These layers assess areas susceptible to flooding based on their...
121
01:28Major Losses in Pipes
1.2K
When a fluid flows through a pipe, it experiences energy losses due to frictional resistance along the pipe walls, known as major losses. These energy losses result in a pressure drop, which varies based on the flow conditions — whether laminar or turbulent — and the specific physical properties of the fluid and pipe.
Fluid flow can be classified as laminar or turbulent, primarily based on the Reynolds number. This dimensionless number reflects the relative influence of inertial to...
Fluid flow can be classified as laminar or turbulent, primarily based on the Reynolds number. This dimensionless number reflects the relative influence of inertial to...
1.2K
02:20Dynamic Equilibrium
52.2K
A reversible chemical reaction represents a chemical process that proceeds in both forward (left to right) and reverse (right to left) directions. When the rates of the forward and reverse reactions are equal, the concentrations of the reactant and product species remain constant over time and the system is at equilibrium. A special double arrow is used to emphasize the reversible nature of the reaction. The relative concentrations of reactants and products in equilibrium systems vary greatly;...
52.2K
01:21Manipulation and Analysis
48
GIS manipulation and analysis functions are vital for decision-making and planning. These activities range from data retrieval tasks, such as selecting information based on specific criteria, to advanced analytical techniques that address complex spatial problems.One critical GIS analysis method is overlaying, which combines multiple data layers to examine impacts. For example, overlaying a river-dammed lake boundary with road networks can identify affected infrastructure. Another common...
48