@article{Fousekis:330599, recid = {330599}, author = {Fousekis, Panos }, title = {Price co-movement and the hedger's value-at-risk in the futures markets for coffee}, journal = {Agricultural Economics Review}, address = {2017-01}, number = {875-2023-310}, year = {2017}, abstract = {This work investigates the strength and the pattern of co-movement between the futures price of the Arabica coffee (traded in New York) and the futures price of the Robusta coffee (traded in London) and obtains forecasts for the Value-at-Risk (VaR) for a commercial trader. The empirical analysis relies of the statistical tool of copulas and on daily observations from 2006 to 2016. According to the empirical results, co-movement is symmetric with respect to sign but is asymmetric with respect to size. The Value-at-Risk ranges from -7 percent to -3 percent, depending on the level of confidence employed.}, url = {http://ageconsearch.umn.edu/record/330599}, doi = {https://doi.org/10.22004/ag.econ.330599}, }