To address the DCC (Dynamic Conditional Correlation) issue from VECM (Vector Error Correction Model) residuals, follow these steps:
Estimate the VECM: Obtain the residuals from the VECM estimation.
Check Residuals: Ensure residuals are stationary and uncorrelated.
Apply DCC Model: Use the residuals as input to the DCC model to capture time-varying correlations.
In EViews, you can perform these steps by first fitting the VECM, extracting residuals, and then using the DCC-GARCH framework to model dynamic correlations.