Dynamics of asymmetric connectedness among magnificent seven technology giants: Insights from QVAR analysis

Author First name, Last name, Institution

Zaghum Umar, Zayed University
Elroi Hadad, Shamoon College of Engineering (SCE)
Andrew Phiri, Nelson Mandela University
Tamara Teplova, HSE University

Document Type

Article

Source of Publication

Quarterly Review of Economics and Finance

Publication Date

4-1-2025

Abstract

This paper studies the return and volatility spillover among the seven largest technology companies (including Apple, Microsoft, Amazon, Alphabet (Google), Meta Platforms (formerly Facebook), Tesla, and Nvidia) referred to as Magnificent seven. We employ a quantile connected approach to study spillover and connectedness under different market conditions. We observe a high degree of interconnectedness in the returns of these firms, with equities transitioning between roles as net receivers and transmitters across various market conditions. Notably, the influence of market size is apparent, with larger-cap firms predominantly acting as net transmitters, while smaller-cap counterparts serve as net receivers. We also identify asymmetry between quantiles, particularly evident in left tails, underscoring the significance of idiosyncratic shocks. Our findings have important implications for policy makers, investors and regulators.

DOI Link

10.1016/j.qref.2025.101977

ISSN

1062-9769

Publisher

Elsevier BV

Volume

101

Disciplines

Business

Keywords

Artificial Intelligence, Magnificent Seven, Quantile connectedness, Technology

Scopus ID

105000219684

Recommended Citation

Umar, Zaghum; Hadad, Elroi; Phiri, Andrew; and Teplova, Tamara, "Dynamics of asymmetric connectedness among magnificent seven technology giants: Insights from QVAR analysis" (2025). All Works. 7166.
https://zuscholars.zu.ac.ae/works/7166

Indexed in Scopus

yes

Open Access

no