Work

Analysis Between Green Hydrogen and Other Financial Assets: A Multi-Scale Correlation Approach

Year: 2025

Type: article

Abstract: Improvements in quality of life, new technologies and population growth have significantly increased energy consumption in Brazil and around the world. The Paris Agreement aims to limit global warming and promote sustainable development, making green hydrogen a fundamental option for industrial decarbonization. Green hydrogen, produced through the electrolysis of water using renewable energy, is gaining traction as a solution to reducing carbon emissions, with the global hydrogen market expected to grow substantially. This study applies the ρDCCA method to evaluate the cross-correlation between the green hydrogen market and various financial assets, including the URTH ETF, Bitcoin, oil futures, and commodities, revealing some strong positive correlations. It highlights the interconnection of the green hydrogen market with developed financial markets and digital currencies. The cross-correlation between the green hydrogen market and the index representing global financial markets presented a value close to 0.7 for small and large time scales, indicating a strong cross-correlation. The green hydrogen market and Bitcoin also presented a cross-correlation value of 0.4. This study provides valuable information for investors and policymakers, especially those concerned with achieving sustainability goals and environmental-social governance compliance and seeking green assets to protect and diversify various traditional investments.

Source: Hydrogen

DOI: 10.3390/hydrogen6010013

Authors: Eder J. A. L. Pereira, Letícia S. Anjos, Paulo Ferreira, Derick Quintino, Gerhard Ett, Thiago B. Murari