This study suggests substantial diversification benefits depending on the time period under consideration between Indian and the US equity markets. This is particularly true after the financial crisis when correlations between the Indian and the US markets became negative suggesting substantial risk reduction if a portfolio is constructed between the US and Indian stocks. However, the benefits of diversification vanished during financial crisis when every market displayed strong positive correlations.
Relationship between Indian and US Stock Returns Before, During and After Financial Crisis
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Published 2018-03-30
Pages 15-18
Abstract
References
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