Extreme return connectedness between renewable energy tokens and renewable energy stock markets: evidence from a quantile-based analysis

Quantile frequency connectedness between energy tokens, crypto market, and renewable energy stock markets

“…The linkages between energy tokens and crypto market with the renewable energy stock markets are quite weak, indicating that using energy tokens in a portfolio together with renewable energy stocks has the advantage of increasing diversification under normal economic scenarios. However, the linkages between them significantly intensify under extreme upper and lower quantiles which is consistent with the findings in Ustaoglu [ 32 ], implying the reduced diversification opportunities under extreme market conditions. It is noteworthy mentioning that, the linkages among the series are not strong in the long term, affirming that long-term investment in energy tokens and renewable energy stocks can still be beneficial for portfolio diversification, no matter what the market condition is.…”