Analysing portfolio diversification opportunities in selected stock markets of North and South America and their impact on the textile sector: An empirical case study

Abstract

This empirical study investigates the financial integration linkages among the sample stock markets of Canada, Mexico,United States (for both New York Stock Exchange, i.e. NYSE and NASDAQ), Panama, Brazil, Chile, Peru, Venezuela,Jamaica, Trinidad, and Tobago during the period from January 2001 to April 2019. This research study also examinesthe impact of selected stock market dynamics on the textile sector. International portfolio diversification has been animportant subject of research in financial fraternity since the emergence of Modern Portfolio Theory in 1952. This studyexamines the portfolio diversification opportunities in the 11 stock markets of Americas.International diversificationamong stock market indices has proven to be fruitful in the past. Certain tests have been used to determine opportunitiesfor diversification are correlation test, pairwise co-integration test, multiple co-integration test and granger causality test.The empirical results show that stock market indices share low correlation among other and they are not highlyco-integrated whereas results of Granger causality test exhibit an unidirectional relationship among few stock marketsin short run.

Do European, Middle-East and Asian Stock Markets Impact on Indian Stock Market? A Case Study Based on NIFTY Stock Index Forecasting

“…The global financial crisis (GFC), the European debt crisis (Mokni & Mansouri, 2017) as well as the recent COVID-19 (coronavirus crisis) pandemic. Many researchers (Azimli, 2020;Sharif et al, 2020;Spulbar et al, 2020;Birau et al, 2021;Coker-Farrell et al, 2021) have investigated the behavior of certain international stock markets. Youssef et al (2021) examined the correlation between the stock market and the uncertainty of economic policies in China, Italy, France, Germany, Spain, Russia, the United States, and the United Kingdom on the COVID-19 pandemic.…”