DIVERSIFICATION GAINS FOR A HOME BIASED TRADER IN THE EMERGING AND FRONTIER EQUITY MARKETS Article Swipe

PDF

Related Concepts

Diversification (marketing strategy) Frontier Equity (law) Emerging markets Financial crisis Latin Americans Debt Business Financial economics Economics Financial system Economic geography Geography Finance Political science Law Marketing Macroeconomics Archaeology

Seema Narayan , Sivagowry Srianathakumar , Greeni Maheshwari , Mobeen Ur Rehman ·

YOU? · · 2021 · Open Access · · DOI: https://doi.org/10.21098/bemp.v24i3.1702 · OA: W3208654300

We study the case of a home-biased equity trader based in Asia, Central and Eastern Europe, the Middle East and North Africa, or Latin America, who is looking at diversifying his/her investment risks internationally within his/her region and three other emerging/frontier regions. We focus on explaining the dynamic conditional correlations between equity markets from 3 January 2002 to 11 November 2016. Timevarying opportunities for diversification are found in several nations across regions. However, diversification opportunities outside a region are largely reserved for bad times, such as during the global financial crisis and the European sovereign debt crisis.