Co-movements in Minor Metal Prices at Different Frequency and Time Period

Cheng Xin , Yang Li , Yudong Wang , Shuo Wang , Tianqiong Chen

Journal of Systems Science and Systems Engineering ›› 2025, Vol. 34 ›› Issue (4) : 432 -447.

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Journal of Systems Science and Systems Engineering ›› 2025, Vol. 34 ›› Issue (4) : 432 -447. DOI: 10.1007/s11518-025-5682-8
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Co-movements in Minor Metal Prices at Different Frequency and Time Period

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Abstract

The increasing importance of minor metals in cutting-edge technologies and high volatility of their prices make a precise examination of co-movement in minor metal prices extremely important. This paper investigates co-movements in minor metal prices at different frequency and time period. The novelty of our method lies in the application ofwavelets analysis and Toeplitz inverse covariance-based clustering to minor metal prices. We show that most of low-frequency co-movements are limited to a certain group of minor metals and the distribution of their structural breaks are closely related to important international events. High-frequency co-movements in minor metal prices are relatively stable during 2008 and 2013 and mainly perform as two types of co-movements. Moreover, during other periods, high-frequency co-movements in minor metal prices shifts among several types of co-movements. These findings equip policymakers with a framework to preempt supply chain disruptions, enable manufacturers to develop dynamic inventory strategies responsive to co-movement regimes, and provide investors with frequency-aware hedging tools tailored for minor metal portfolios.

Keywords

Minor metal price / co-movement / frequency / time period

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Cheng Xin, Yang Li, Yudong Wang, Shuo Wang, Tianqiong Chen. Co-movements in Minor Metal Prices at Different Frequency and Time Period. Journal of Systems Science and Systems Engineering, 2025, 34(4): 432-447 DOI:10.1007/s11518-025-5682-8

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Systems Engineering Society of China and Springer-Verlag GmbH Germany

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