Persistence in Some Energy Futures Markets

  1. Cuñado Eizaguirre, Juncal
  2. Gil Alaña, Luis Alberiko
  3. Pérez de Gracia Hidalgo, Fernando
Revue:
Notas técnicas: [continuación de Documentos de Trabajo FUNCAS]

ISSN: 1988-8767

Année de publication: 2008

Número: 434

Type: Working Paper

D'autres publications dans: Notas técnicas: [continuación de Documentos de Trabajo FUNCAS]

Résumé

In this paper, we examine the possibility of long range dependence in some energy futures markets for different maturities. In order to test for persistence, we use a variety of techniques based on non-parametric, semiparametric and parametric methods. The results indicate that there is little or no evidence of long memory in gasoline, propane, oil and heating oil at different maturities. However, when we focus on the volatility process, proxied by the absolute returns, we find strong evidence of long memory in all the variables at different contracts.