Analyzing Systematic Risks Associated with Financial Engineering Commodities

    Shaliza Alwi ,Irfah Najihah Basir Malan ,Rabiatul Munirah ,Siti Hawa Yusof ,Siti Nor Aini Mohd Aslam
    Keywords: Crude palm oil, gold, tin, systematic risks, commodity futures ,


    This study investigates the relationship between systematic risks and future commodity contracts. This
    study concludes that interest rates, inflation rates, and currency exchange rates have a significant effect
    on commodity futures contracts (crude palm oil, gold, and tin). Apart from that, this study also includes
    the latest financial engineering derivatives, which is Futures Bitcoin, to examine the relationship between
    systematic risks. The results demonstrate that currency exchange rates are the most influential risk on future
    commodities and bitcoin. This study adds to the current literature of derivatives commodities and alerts
    regulators to the importance of establishment of fiscal and economic policies, particularly during the
    Covid 19 pandemic.

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