{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,10,2]],"date-time":"2026-10-02T14:55:28Z","timestamp":1790952928819,"version":"4.1.0"},"posted":{"date-parts":[[2026]]},"group-title":"SSRN","reference-count":0,"publisher":"Elsevier BV","license":[{"start":{"date-parts":[[2026,1,1]],"date-time":"2026-01-01T00:00:00Z","timestamp":1767225600000},"content-version":"unspecified","delay-in-days":0,"URL":"https:\/\/www.uspto.gov\/ip-policy\/copyright-policy\/copyright-basics"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"abstract":"<jats:p>Using 30 U.S. industries, we show that the apparent disappearance of downside dominance after factor adjustment partly reflects a change in what counts as a negative shock. In 2014\u20132025, negative-return days account for 94.37% of positive predictive association strength in the raw-return network. Market adjustment lowers this share to 63.64% when the original signs are retained and to 48.95% when residual signs define the channels. Relabeling therefore accounts for 32.4% of the measured reduction; three- and five-factor models give similar results. The ordering survives alternative transformations and treatment of zero observations. Simulations without direct links between industry-specific shocks can generate strong raw downside dominance, but observed residual strength and fixed-sign imbalance exceed this benchmark. Factor adjustment thus attenuates the imbalance; near balance also depends on shock classification and does not imply that residual dependence has disappeared.<\/jats:p>","DOI":"10.2139\/ssrn.7552773","type":"posted-content","created":{"date-parts":[[2026,10,2]],"date-time":"2026-10-02T14:27:47Z","timestamp":1790951267000},"source":"Crossref","is-referenced-by-count":0,"title":["Downside dominance in industry volatility networks: The role of shock classification"],"prefix":"10.2139","author":[{"ORCID":"https:\/\/orcid.org\/0009-0002-0732-7463","authenticated-orcid":true,"given":"Arun","family":"Sinha","sequence":"first","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"78","container-title":[],"original-title":[],"deposited":{"date-parts":[[2026,10,2]],"date-time":"2026-10-02T14:27:47Z","timestamp":1790951267000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.ssrn.com\/abstract=7552773"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2026]]},"references-count":0,"URL":"https:\/\/doi.org\/10.2139\/ssrn.7552773","relation":{},"subject":[],"published":{"date-parts":[[2026]]},"subtype":"preprint"}}