Version 1
: Received: 8 June 2023 / Approved: 12 June 2023 / Online: 13 June 2023 (12:15:00 CEST)
How to cite:
Hakim, A.; Thalassinos, E. An Overview about the Cryptocurrencies as Safe Haven Investment on the Development of the COVID19 Outbreak. Preprints2023, 2023060935. https://doi.org/10.20944/preprints202306.0935.v1
Hakim, A.; Thalassinos, E. An Overview about the Cryptocurrencies as Safe Haven Investment on the Development of the COVID19 Outbreak. Preprints 2023, 2023060935. https://doi.org/10.20944/preprints202306.0935.v1
Hakim, A.; Thalassinos, E. An Overview about the Cryptocurrencies as Safe Haven Investment on the Development of the COVID19 Outbreak. Preprints2023, 2023060935. https://doi.org/10.20944/preprints202306.0935.v1
APA Style
Hakim, A., & Thalassinos, E. (2023). An Overview about the Cryptocurrencies as Safe Haven Investment on the Development of the COVID19 Outbreak. Preprints. https://doi.org/10.20944/preprints202306.0935.v1
Chicago/Turabian Style
Hakim, A. and Eletherios Thalassinos. 2023 "An Overview about the Cryptocurrencies as Safe Haven Investment on the Development of the COVID19 Outbreak" Preprints. https://doi.org/10.20944/preprints202306.0935.v1
Abstract
Using the onset of the COVID 19 pandemic, this chapter examines the cryptocurrencies as safe haven investment for stocks of our time varying realization as to the economic chock centralized by the growing pandemic. Using daily data of COVID 19 measures and daily prices for 4 cryptocurrencies and 4 stocks assets for the whole year 2020, we apply both the VAR-DCC-GARCH and Wavelet Coherency models. New evidence of our chapter find that the Bitcoin and Etherum are highly correlated in the short and long horizon with the selected stocks. However for the case of the Litecoin and the XRP are correlated negatively with the stocks in the whole COVID19 period. We find evidence that, Bitcoin is strong safe haven asset for all the selected stocks during the COVID19 era, while the Litecoin is weak safe haven investment for all the stocks and the XRP is with lowest potential of safe haven investment for all the studied stocks. Within the study we are providing a diversification of hedging for the investors and policy makers suggesting that the cryptocurrencies acted as safe haven investment similar to the precious metals during historic crisis and as fiat money for any economic shocks might occurred. The abstract should summarize the contents of the paper in short terms, i.e. 150-250 words.
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
