This thesis explores the dynamic relationships between strategic and precious metals
and equity markets, including electric vehicle (EV) manufacturers, traditional automakers, and
clean energy indices. Using daily data from 2014 to 2024, the study applies a range of
econometric techniques—DCC-GARCH, VAR, Granger causality tests, impulse response
functions (IRFs), and the Diebold and Yilmaz (2012) spillover index, to analyze volatility
transmission, co-movement, hedge ratios, and optimal portfolio strategies.
The results show strong time-varying correlations and spillovers between strategic
metals (such as copper, aluminum, cobalt, nickel, and zinc) and EV or clean energy stocks,
particularly during major crises like the COVID-19 pandemic and the Russia–Ukraine war.
Granger causality and IRF analyses reveal that strategic metals have a more significant impact
on EV stocks than on traditional automakers, reflecting their critical role in battery and
renewable technology supply chains.
Hedging and portfolio analysis further indicate that strategic metals offer more
effective, responsive hedging tools for green investments, while precious metals like gold and
silver provide more passive protection during market uncertainty. Platinum is found to be a
relatively inefficient hedge due to its high volatility and cost.
Overall, the study contributes to the literature by demonstrating the growing financial
integration of strategic metals with the green economy and offering actionable insights for
investors and policymakers seeking to manage risk and enhance portfolio resilience during
economic and geopolitical shocks.
