Investment Evaluation and Price Formation in Markets for Oil and Mineral Resources

The project will investigate price formation and develop an evolutionary learning algorithm for modelling and forecasting world mineral and oil price movements. We will extend the research into relevant investment decisions, focussing on resource and related stocks, and assess their relations with world mineral and oil risk factors. This work leads to improved risk management practices and investment performance. New models will be developed to capture the non-linear behaviour, and episodes of extreme movements in these markets. These models will have wider applicability and result in new theoretical approaches and empirical methods to study other asset price movements.