The relationship between sour crude oil and green energy ETFs

Abstract

The main idea of this paper is to test relationship between Sour Crude Oil market and Green Energy ETFs market. The data samples were collected from Bloomberg through Aug 17th 2012 to Aug 15th 2013. To analyse multiple time series data sets, this paper employed the Johansen test and the Vectors Error Correction model. The final results show both long and short-term relationships, that the Sour Crude Oil spot price is a leading indicator between these two markets.