Article Title

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

Authors

Sivagowry Srianathakumar, Independent Researcher, Australia
Greeni Maheshwari, RMIT University, Vietnam
Mobeen Ur Rehman, South Ural State University, Russian Federation

Document Type

Article

Abstract

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.

Recommended Citation

Srianathakumar, Sivagowry; Maheshwari, Greeni; and Ur Rehman, Mobeen (2021) "DIVERSIFICATION GAINS FOR A HOME BIASED TRADER IN THE EMERGING AND FRONTIER EQUITY MARKETS," Bulletin of Monetary Economics and Banking: Vol. 24: No. 3, Article 1.
DOI: https://doi.org/10.21098/bemp.v24i3.1702
Available at: https://bulletin.bmeb-bi.org/bmeb/vol24/iss3/1

First Page

385

Last Page

414