Price Risk Control of Natural Resource Commodities through Behavioral Finance Analysis: An Information Transfer Perspective
To fully understand the market price volatility mechanism of natural resource commodities (NRCs), and control the price risks of NRCs, it is important to deeply analyze how NRC price is affected by uncertain risk factors, such as supply risk, demand risk, macroscopic price risk, political price risk...
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| Format: | Article |
| Language: | English |
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Wiley
2022-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2022/5236903 |
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| _version_ | 1832562228831715328 |
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| author | Zehui Liu |
| author_facet | Zehui Liu |
| author_sort | Zehui Liu |
| collection | DOAJ |
| description | To fully understand the market price volatility mechanism of natural resource commodities (NRCs), and control the price risks of NRCs, it is important to deeply analyze how NRC price is affected by uncertain risk factors, such as supply risk, demand risk, macroscopic price risk, political price risk, policy price risk, seasonal price risk, and sudden price risks. The theory of behavioral finance can establish a transaction decision-making model more in line with the actual market situation. Therefore, this paper explores the price risk control of NRCs from the perspective of financial theories. Firstly, the authors empirically examined the specific impacts of uncertain risk factors on NRC price, and the directions of the impacts. Next, the price volatility and transaction risks of NRCs brought by information transmission were analyzed, following by the construction of an information transmission model for NRC trading market. After that, a dynamic price model was built for NRCs based on the theory of behavioral finance. Finally, the effectiveness of the proposed model was verified through experiments. |
| format | Article |
| id | doaj-art-e7c455139c0d4efe8e74db6db8745b6e |
| institution | Kabale University |
| issn | 1607-887X |
| language | English |
| publishDate | 2022-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-e7c455139c0d4efe8e74db6db8745b6e2025-02-03T01:23:13ZengWileyDiscrete Dynamics in Nature and Society1607-887X2022-01-01202210.1155/2022/5236903Price Risk Control of Natural Resource Commodities through Behavioral Finance Analysis: An Information Transfer PerspectiveZehui Liu0School of Economics and FinanceTo fully understand the market price volatility mechanism of natural resource commodities (NRCs), and control the price risks of NRCs, it is important to deeply analyze how NRC price is affected by uncertain risk factors, such as supply risk, demand risk, macroscopic price risk, political price risk, policy price risk, seasonal price risk, and sudden price risks. The theory of behavioral finance can establish a transaction decision-making model more in line with the actual market situation. Therefore, this paper explores the price risk control of NRCs from the perspective of financial theories. Firstly, the authors empirically examined the specific impacts of uncertain risk factors on NRC price, and the directions of the impacts. Next, the price volatility and transaction risks of NRCs brought by information transmission were analyzed, following by the construction of an information transmission model for NRC trading market. After that, a dynamic price model was built for NRCs based on the theory of behavioral finance. Finally, the effectiveness of the proposed model was verified through experiments.http://dx.doi.org/10.1155/2022/5236903 |
| spellingShingle | Zehui Liu Price Risk Control of Natural Resource Commodities through Behavioral Finance Analysis: An Information Transfer Perspective Discrete Dynamics in Nature and Society |
| title | Price Risk Control of Natural Resource Commodities through Behavioral Finance Analysis: An Information Transfer Perspective |
| title_full | Price Risk Control of Natural Resource Commodities through Behavioral Finance Analysis: An Information Transfer Perspective |
| title_fullStr | Price Risk Control of Natural Resource Commodities through Behavioral Finance Analysis: An Information Transfer Perspective |
| title_full_unstemmed | Price Risk Control of Natural Resource Commodities through Behavioral Finance Analysis: An Information Transfer Perspective |
| title_short | Price Risk Control of Natural Resource Commodities through Behavioral Finance Analysis: An Information Transfer Perspective |
| title_sort | price risk control of natural resource commodities through behavioral finance analysis an information transfer perspective |
| url | http://dx.doi.org/10.1155/2022/5236903 |
| work_keys_str_mv | AT zehuiliu priceriskcontrolofnaturalresourcecommoditiesthroughbehavioralfinanceanalysisaninformationtransferperspective |