International Journal of

Business & Management Studies

ISSN 2694-1430 (Print), ISSN 2694-1449 (Online)
DOI: 10.56734/ijbms
Safe Haven Assets In Stock Investments On The Indonesian Stock Exchange: An Empirical Study During The Covid-19 Pandemic

Abstract


Safe haven assets are secure investment during times of economic downturn. This study aims at analysing the roles of three safe haven assets, Bitcoin, gold, and US dollars, during the COVID-19 pandemic. By conducting a time series analysis of returns on stocks, gold, Bitcoin, and US dollars between 2020 and 2022 using Vector Auto Regression (VAR) method, this study found the empirical evidence that suggests a negative correlation between gold and IDX, and between US dollars and IDX. Therefore, it can be concluded that gold and US dollars are safe haven assets in the IDX market. Meanwhile, despite being less resilient than gold and US dollars, Bitcoin’s independence from stocks during bearish markets makes it a safe haven asset.