Are clean energy markets efficient? A multifractal scaling and herding behavior analysis of clean and renewable energy markets before and during the COVID19 pandemic

Influence of the Russia–Ukraine War and COVID-19 Pandemic on the Efficiency and Herding Behavior of Stock Markets: Evidence from G20 Nations

“…In the context of the stock market index, a barometer of overall market behavior, the robust tool of MFDFA provides assistance to determine the availability of long-range dependencies incorporating with the EMH and shows the level of inefficiency (Podobnik and Stanley 2008). MFDFA has been employed by several researchers to study structural features and to explore the efficiency levels of various financial markets (Mali and Mukhopadhyay 2014;Mnif and Jarboui 2021;Memon et al 2023) and more specifically stock markets of different regions including Europe (Caraiani 2012;Tiwari et al 2019), Asia (Wang et al 2009;Rizvi and Arshad 2016;Zhu and Zhang 2018), and America (Wang et al 2014). However, there is an obstacle in the way of studying the behaviors and comparing the efficiencies of Group of Twenty (G20) stock markets.…”

“…Such a well-known methodology will capture important information about the dynamics and complexity of these stock markets. Additionally, MFDFA offers a powerful analytical tool for exploring herding behavior in stock markets by revealing multifractal properties and long-range correlations in price dynamics (Aslam et al 2020a(Aslam et al , 2020cMemon et al 2023). Moreover, MFDFA can quantify the extent and persistence of the trends resulting from synchronized trading activities among investors, providing insights into the presence of herding behavior (Aslam et al 2021;Sun et al 2020).…”