Global Portfolio Diversification with Emerging Stock Markets

Authors

  • İlhan Meriç Rider University
  • Jie Ding Rider University
  • Gülser Meriç Rowan University

DOI:

https://doi.org/10.5195/emaj.2016.88

Keywords:

Global Portfolio Diversification, Emerging Stock Markets, Correlation of National Stock Markets, Principal Components Analysis, Factor Loadings of Principal Components

Abstract

Because of their low correlation with each other and with developed stock markets, emerging stock markets are generally mentioned as attractive portfolio diversification prospects for global investors. In this paper, we use the Principal Components Analysis (PCA) method to study the global portfolio diversification opportunities for the investors of seven developed stock markets in twenty emerging stock markets with data for the January 1, 2003-January 1, 2014 period.

Author Biographies

İlhan Meriç, Rider University

Department of Finance and Economics

Professor of Finance

Jie Ding, Rider University

Department of Decision Sciences

Associate Professor of Decision Sciences

Gülser Meriç, Rowan University

Deapartment of Accounting and Finance

Professor of Finance

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Published

2016-02-02

Issue

Vol. 6 No. 1 (2016)

Section

Articles

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