Before revision:  We present asymptotic theory for our encompassing tests and verify their finite sample properties through various simulation setups. In an empirical application, we utilize the encompassing tests in order to demonstrate the superiority of forecast combination methods for the ES for the IBM stock .
After revision:  We present asymptotic theory for our encompassing tests and verify their finite sample properties of the tests in an extensive simulation study. We use the encompassing tests in order to demonstrate the superiority of forecast combination methods for the ES for the IBM stock .