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Do Diamond Stocks Shine Brighter than Diamonds?

1
Louvain Finance and CORE, Center for Research Operations and Econometrics, 1348 Louvain-la-Neuve, Belgium
2
Department of Statistical Sciences, Sapienza University of Rome, 00185 Rome, Italy
*
Author to whom correspondence should be addressed.
J. Risk Financial Manag. 2019, 12(2), 79; https://doi.org/10.3390/jrfm12020079
Received: 28 February 2019 / Revised: 22 April 2019 / Accepted: 24 April 2019 / Published: 3 May 2019
(This article belongs to the Special Issue Alternative Assets and Cryptocurrencies)
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PDF [2834 KB, uploaded 27 May 2019]
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Abstract

This paper addresses two practical investment questions: Is investing in the diamond equity market a more feasible and liquid alternative to investing in diamonds? Additionally, is diamond equity affected by polished diamond prices? We assemble an original database of diamond mining stock prices traded on main stock exchanges in order to assess their relationship with diamond prices. Our results show that the market of diamond-mining stocks does not represent a valid investment alternative to the diamond commodity. Diamond equity returns are not driven by diamond price dynamics but rather by local market stock indices. View Full-Text
Keywords: diamond stocks; diamond prices; investment asset; capital asset pricing model diamond stocks; diamond prices; investment asset; capital asset pricing model
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
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Jotanovic, V.; D’Ecclesia, R.L. Do Diamond Stocks Shine Brighter than Diamonds? J. Risk Financial Manag. 2019, 12, 79.

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