Dynamic energy hedging and safe havens in BRICS Plus stock markets

This paper examines whether crude oil and natural gas act as diversifiers, hedges, and safe havens for BRICS Plus stock markets during the COVID-19 pandemic, the Russia–Ukraine conflict, and the Silicon Valley Bank collapse. Results indicate that crude oil serves as an effective diversifier in normal periods and provides strong safe-haven protection during extreme crises, especially for Russia, India, and China. Natural gas primarily serves as a stable diversifier and hedge, with stronger effects during downturns than during acute crises. Overall, crude oil demonstrates greater hedging effectiveness, offering important implications for dynamic risk management and portfolio allocation under uncertainty.

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Publication Details

Journal
Modern Finance
Published
2026-04-17
DOI
https://doi.org/10.61351/mf.v4i2.436
Primary Topic
Market Dynamics and Volatility
Type
article
Field-Weighted Citation Impact
0.00
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article

Dynamic energy hedging and safe havens in BRICS Plus stock markets

Rihab Belguith, Yessmine Snene Manzli
Modern Finance
Market Dynamics and Volatility
article

Dynamic energy hedging and safe havens in BRICS Plus stock markets

Rihab Belguith, Yessmine Snene Manzli
article en

Abstract

This paper examines whether crude oil and natural gas act as diversifiers, hedges, and safe havens for BRICS Plus stock markets during the COVID-19 pandemic, the Russia–Ukraine conflict, and the Silicon Valley Bank collapse. Results indicate that crude oil serves as an effective diversifier in normal periods and provides strong safe-haven protection during extreme crises, especially for Russia, India, and China. Natural gas primarily serves as a stable diversifier and hedge, with stronger effects during downturns than during acute crises. Overall, crude oil demonstrates greater hedging effectiveness, offering important implications for dynamic risk management and portfolio allocation under uncertainty.

Modern FinanceVol. 4(2)
University of Sfax (TN)
Openalex Percentile: Top 16%
Market Dynamics and Volatility
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