UPDATE: Benefits of International Portfolio Diversification
If equity markets are in fact integrated, an unexpected event in one market may influence not only returns, but also volatility (measured by standard deviation) in the other markets.
Tag: diversification
What to Do When Traditional Diversification Strategies Fail
Many factors contribute to volatile market behavior. This article explores a methodology that attempts to address these factors.
Benefits of International Portfolio Diversification
Knowing the correlations between the returns of various national markets is important for the process of allocating investments among these markets.