Can the relative price ratio of gold to platinum predict the Chinese stock market?
In this paper, we examine whether the relative price ratio of gold to platinum (GP ratio) can predict the aggregate stock market return in the US and China. We confirm that the GP ratio is a strong predictor of US market excess return; however, it is not a reliable predictor for excess return in the...
| Main Authors: | , , |
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| Format: | Journal Article |
| Published: |
2020
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| Online Access: | http://hdl.handle.net/20.500.11937/89111 |
| _version_ | 1848765163704942592 |
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| author | Han, Xing Ruan, Xinfeng Tan, Yongxian |
| author_facet | Han, Xing Ruan, Xinfeng Tan, Yongxian |
| author_sort | Han, Xing |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | In this paper, we examine whether the relative price ratio of gold to platinum (GP ratio) can predict the aggregate stock market return in the US and China. We confirm that the GP ratio is a strong predictor of US market excess return; however, it is not a reliable predictor for excess return in the Chinese stock market. The evidence highlights the limitation of relying on the GP ratio as a non-parametric, real-time return predictor, and indicates the diversification benefits of investing in the Chinese stock market. |
| first_indexed | 2025-11-14T11:30:53Z |
| format | Journal Article |
| id | curtin-20.500.11937-89111 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T11:30:53Z |
| publishDate | 2020 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-891112022-08-29T01:36:35Z Can the relative price ratio of gold to platinum predict the Chinese stock market? Han, Xing Ruan, Xinfeng Tan, Yongxian In this paper, we examine whether the relative price ratio of gold to platinum (GP ratio) can predict the aggregate stock market return in the US and China. We confirm that the GP ratio is a strong predictor of US market excess return; however, it is not a reliable predictor for excess return in the Chinese stock market. The evidence highlights the limitation of relying on the GP ratio as a non-parametric, real-time return predictor, and indicates the diversification benefits of investing in the Chinese stock market. 2020 Journal Article http://hdl.handle.net/20.500.11937/89111 10.1016/j.pacfin.2020.101379 restricted |
| spellingShingle | Han, Xing Ruan, Xinfeng Tan, Yongxian Can the relative price ratio of gold to platinum predict the Chinese stock market? |
| title | Can the relative price ratio of gold to platinum predict the Chinese stock market? |
| title_full | Can the relative price ratio of gold to platinum predict the Chinese stock market? |
| title_fullStr | Can the relative price ratio of gold to platinum predict the Chinese stock market? |
| title_full_unstemmed | Can the relative price ratio of gold to platinum predict the Chinese stock market? |
| title_short | Can the relative price ratio of gold to platinum predict the Chinese stock market? |
| title_sort | can the relative price ratio of gold to platinum predict the chinese stock market? |
| url | http://hdl.handle.net/20.500.11937/89111 |