scholarly journals Risk Diversification In World Stock Markets

2011 ◽  
Vol 4 (10) ◽  
Author(s):  
H. Christine Hsu ◽  
H. Jeffrey Wei
Keyword(s):  
Risk Reduction ◽  
Stock Markets ◽  
Portfolio Risk ◽  
Global Risk ◽  
Risk Diversification ◽  
The Us ◽  
The World ◽  
Reduction Effect ◽  
Highly Correlated ◽  
The U.S

The benefit of risk diversification refers to the reduction in the portfolio risk when different stocks are combined into a portfolio. This risk reduction benefit exists because not all stocks are moving together through time; this is presumably true for stocks from different countries. The smaller the degree of co-movements in the world stock markets (i.e., the less the correlation between the markets), the greater is the risk reduction effect. Thus, it makes sense for a US investor to invest globally as long as the foreign stock markets are not highly correlated with the U.S. market. Nevertheless, recent evidence shows that the correlations between the U.S. and various foreign stock markets are evolving through time due to the integration of world capital markets and international capital flows. Now that we witness the increased interdependence of the world stock markets, does it still make sense to diversify globally? In this paper, we address the question of global risk diversification from the US perspective.

scholarly journals Global Risk Diversification: An Empirical Investigation From The U. S. Perspective

2011 ◽  
Vol 10 (8) ◽  
pp. 57
Author(s):  
H. Christine Hsu
Keyword(s):  
Stock Markets ◽  
Global Financial Crisis ◽  
Global Market ◽  
Asia Pacific ◽  
Global Risk ◽  
Risk Diversification ◽  
Gold Silver ◽  
Portfolio Managers ◽  
The Global Financial Crisis ◽  
The U.S

The case for global risk diversification has been built on correlations between the U.S. and international stock markets. Now that we witness how tightly the world stock markets are correlated, especially after the global financial crisis of 2008-2009, does it still make sense to diversify globally? Can the investments in global equity portfolios be protected in todays volatile markets? These questions have preoccupied a growing number of portfolio managers in recent years, as well as many of us who invest in stock markets. Since gold/silver and bonds tend to move inversely with the stock markets, a hedging strategy of combining them with stock portfolios should protect the equity investments during global market downturns. The study explores the risk-return profiles of various global portfolios and provides insights about the extent to which the U.S. investors need to allocate their investments in Asia/Pacific, European stock markets, and across other investment vehicles, such as gold/silver and bonds. The findings from this research have practical implications for both investors and portfolio managers interested in going global.

scholarly journals Influence of world stock markets on the development of the stock market in Ukraine

2021 ◽  
Vol 18 (4) ◽  
pp. 223-240
Author(s):  
Inna Shkolnyk ◽  
Serhiy Frolov ◽  
Volodymyr Orlov ◽  
Viktoriia Dziuba ◽  
Yevgen Balatskyi
Keyword(s):  
Stock Market ◽  
Stock Markets ◽  
Mutual Influence ◽  
Stock Exchanges ◽  
World Federation ◽  
Pairwise Correlation ◽  
Stock Market Performance ◽  
The Us ◽  
The World ◽  
Global Stock Markets

Viewing the development of the stock market in Ukraine, the economy, which world financial organizations characterize as small and open, is largely determined by the trends formed by the global stock markets and leading stock exchanges. Therefore, the study aims to analyze Ukraine’s stock market, the world stock market, stock markets in the regions, and to assess their mutual influence. The study uses the data of the World Federation of Exchanges and National Securities and Stock Market Commission (Ukraine) from 2015 to 2020. Stock market performance forecasts are built using triple exponential smoothing. Based on pairwise correlation coefficients, the existence of a significant dependence in the development of the world stock market on the development of the American stock market was determined. Regarding the Ukrainian stock exchanges, only SE “PFTS” demonstrated its dependence on the US stock market. The results of the regression model based on an exponentially smoothed series of trading volumes in all markets showed that variations in the volume of trading on the world stock market are due to the situation on the US stock markets. Trading volume dynamics on Ukrainian stock exchanges such as SE “PFTS” and SE “Perspektiva” is almost 50% determined by the development of stock markets in the American region. Although Ukraine is geographically located in Europe, the results show a lack of significant links and the impacts of stock markets in this region on the major Ukrainian stock exchanges and the stock market as a whole.

scholarly journals Opportunity or Crisis? Volatility and Leverage Effect in the World’s Largest Economies

2019 ◽  
Vol 9 (4) ◽  
pp. 1
Author(s):  
Amalendu Bhunia ◽  
Devrim Yaman
Keyword(s):  
Stock Market ◽  
Stock Markets ◽  
Market Volatility ◽  
Future Market ◽  
Market Returns ◽  
Stock Market Returns ◽  
The Us ◽  
The World ◽  
The Impact ◽  
The Relationship

This paper examines the relationship between asset volatility and leverage for the three largest economies (based on purchasing power parity) in the world; US, China, and India. Collectively, these economies represent Int$56,269 billion of economic power, making it important to understand the relationship among these economies that provide valuable investment opportunities for investors. We focus on a volatile period in economic history starting in 1997 when the Asian financial crisis began. Using autoregressive models, we find that Chinese stock markets have the highest volatility among the three stock markets while the US stock market has the highest average returns. The Chinese market is less efficient than the US and Indian stock markets since the impact of new information takes longer to be reflected in stock prices. Our results show that the unconditional correlation among these stock markets is significant and positive although the correlation values are low in magnitude. We also find that past market volatility is a good indicator of future market volatility in our sample. The results show that positive stock market returns result in lower volatility compared to negative stock market returns. These results demonstrate that the largest economies of the world are highly integrated and investors should consider volatility and leverage besides returns when investing in these countries.

scholarly journals An Overview of the U.S. Bell Pepper Industry

EDIS ◽  
2018 ◽  
Vol 2018 (2) ◽  
Author(s):  
Trina Biswas ◽  
Zhengfei Guan ◽  
Feng Wu
Keyword(s):  
Resource Economics ◽  
The United States ◽  
Bell Pepper ◽  
Vegetable Crops ◽  
The Us ◽  
The World ◽  
Economics Department ◽  
Economic Contribution ◽  
Production Prices ◽  
The U.S

Bell pepper is one of the most widely cultivated vegetable crops in the world; it is widely grown all over the United States, and production of bell pepper has been a major economic contribution to the vegetable industry in Florida and California. This 4-page fact sheet written by Trina Biswas, Zhengfei Guan, and Feng Wu and published by the UF/IFAS Food and Resource Economics Department provides an overview of the US bell pepper industry, including production, prices, and trade. http://edis.ifas.ufl.edu/fe1028

scholarly journals Study of Search Engine Transaction Logs Shows Little Change in How Users use Search Engines

2006 ◽  
Vol 1 (3) ◽  
pp. 67
Author(s):  
David Hook
Keyword(s):  
Search Engine ◽  
Search Engines ◽  
World Wide ◽  
Web Search ◽  
Result Page ◽  
Significant Difference ◽  
The Us ◽  
The World ◽  
The U.S ◽  
Over Time

A review of: Jansen, Bernard J., and Amanda Spink. “How Are We Searching the World Wide Web? A Comparison of Nine Search Engine Transaction Logs.” Information Processing & Management 42.1 (2006): 248-263. Objective – To examine the interactions between users and search engines, and how they have changed over time. Design – Comparative analysis of search engine transaction logs. Setting – Nine major analyses of search engine transaction logs. Subjects – Nine web search engine studies (4 European, 5 American) over a seven-year period, covering the search engines Excite, Fireball, AltaVista, BWIE and AllTheWeb. Methods – The results from individual studies are compared by year of study for percentages of single query sessions, one-term queries, operator (and, or, not, etc.) usage and single result page viewing. As well, the authors group the search queries into eleven different topical categories and compare how the breakdown has changed over time. Main Results – Based on the percentage of single query sessions, it does not appear that the complexity of interactions has changed significantly for either the U.S.-based or the European-based search engines. As well, there was little change observed in the percentage of one-term queries over the years of study for either the U.S.-based or the European-based search engines. Few users (generally less than 20%) use Boolean or other operators in their queries, and these percentages have remained relatively stable. One area of noticeable change is in the percentage of users viewing only one results page, which has increased over the years of study. Based on the studies of the U.S.-based search engines, the topical categories of ‘People, Place or Things’ and ‘Commerce, Travel, Employment or Economy’ are becoming more popular, while the categories of ‘Sex and Pornography’ and ‘Entertainment or Recreation’ are declining. Conclusions – The percentage of users viewing only one results page increased during the years of the study, while the percentages of single query sessions, one-term sessions and operator usage remained stable. The increase in single result page viewing implies that users are tending to view fewer results per web query. There was also a significant difference in the percentage of queries using Boolean operators between the US-based and the European-based search engines. One of the study’s findings was that results from a study of a particular search engine cannot necessarily be applied to all search engines. Finally, web search topics show a trend towards information or commerce searching rather than entertainment.

scholarly journals Good Questions 11 Where are governments’ plans for dealing with food system disruptions?

2020 ◽  
Vol 11 (2) ◽  
pp. 3-15
Author(s):  
George Kent
Keyword(s):  
Large Scale ◽  
Food System ◽  
National Guard ◽  
The United States ◽  
Food Banks ◽  
News Agencies ◽  
The Us ◽  
The World ◽  
Large Farms ◽  
The U.S

In April 2020, when most businesses in the United States were shut down because of Covid-19, many people became unemployed and their incomes vanished. They lined up at the charitable food banks in their neighborhoods, but the shelves were quickly emptied. At the same time, many large farms buried their crops because the restaurants and hotels they served had closed. Some news agencies said the obvious solution was for government to organize transport of those farms’ produce to food banks or to idle restaurants for distribution to people in need. Only the federal government could make that work at a large scale, perhaps with the help of the National Guard and the U.S. army’s logistic capacities. It didn’t happen. Where are governments’ plans for dealing with food system disruptions, in the US and throughout the world?

scholarly journals The Influence of Covid-19 on Subprime in the U.S.

2021 ◽  
Vol 235 ◽  
pp. 01063
Author(s):  
Haoyang Li
Keyword(s):  
Financial Market ◽  
Financial Institutions ◽  
The United States ◽  
Subprime Lending ◽  
Subprime Mortgage ◽  
The Us ◽  
The World ◽  
Us Government ◽  
The 2008 Financial Crisis ◽  
The U.S

Subprime lending in the United States was a major concern after the 2008 financial crisis. While Covid-19 is sweeping the world, how will the US government and financial institutions deal with the potential crisis of subprime mortgage will be discussed in this study. Financial market institutions and the US government should both change their strategies to deal with the crisis. In addition to controlling the spread of the epidemic, the US government should temporarily lower the minimum wage and provide a series of quantitative financial subsidies. Financial institutions should also update loan data and use better monitoring and regulation to reduce subprime risk to cope with this potential crisis.

scholarly journals Impacts of the U.S. subsidy to soybeans on World prices, production and exports

2006 ◽  
Vol 44 (4) ◽  
pp. 631-676 ◽  
Author(s):  
Antônio Salazar P. Brandão ◽  
Elcyon Caiado Rocha Lima
Keyword(s):  
European Union ◽  
Econometric Model ◽  
The United States ◽  
The European Union ◽  
Net Exports ◽  
The Us ◽  
International Prices ◽  
The World ◽  
Domestic Support ◽  
The U.S

This paper specifies and estimates an econometric model of the soybean market (grain, oil and meal) to assess the effects of U.S. domestic support to soybeans on world soybean prices, production and exports. The model divides the world into five regions (modules): Argentina, Brazil, the European Union, the United States (US) and the Rest of the World (ROW). There are interactions between the modules through the international prices and the net exports of each soybean product. The international prices of grain, oil and meal are endogenous and are determined equating net exports of the first four modules (Argentina, Brazil, European Union and the U.S.) to net imports of the ROW. The analysis is conducted eliminating the U.S. domestic support to soybeans and simulating the impacts on the variables of interest. The simulations show a significant impact of the US subsidy to soybeans on world prices and net exports of the four selected regions.

scholarly journals Analysis of the effect of coronavirus (covid-19) on the development of the world economic system

2020 ◽  
Vol 3 (11) ◽  
pp. 143-156
Author(s):  
N.M. Makhmudov ◽  
Alimova Guzal Alisherovna ◽  
A.A. Kazakov
Keyword(s):  
Economic System ◽  
Stock Markets ◽  
The World Bank ◽  
The Us ◽  
The World ◽  
World Economic ◽  
Global Stock Markets ◽  
National Economies ◽  
The Impact ◽  
Global Stock

The article provides a comprehensive analysis of the impact of the coronavirus COVID-19 on the global economic system. In particular, the authors analyze the onset of a pandemic and the characteristics of the new coronavirus. The conclusions about the unpreparedness of the world community for global threats caused by the outbreak of the disease are supported by the World Bank's arguments about the unpreparedness of countries for catastrophic epidemics. The authors combined the main threats identified by the World Bank into a single system. COVID-19 has had a significant impact on global stock markets. With the increase in the number of people infected with coronavirus, the tension among investors also grew. By the end of February this year, a crash occurred in the US stock markets, the authors attribute it to an underestimation of the spread of the virus, and as a result, this led to the breakdown of many trading chains and the lack of certainty and stability. The article also analyzes the impact of coronavirus on the economy of key countries of the world. It also examined the economic mechanisms used by these countries to mitigate the effects of COVID-19 and support the economy. In conclusion, key conclusions were drawn about the impact and consequences of COVID-19 on national economies and the global system.

scholarly journals To What Extent are Stock Returns Driven by Mean and Volatility Spillover Effects? – Evidence from Eight European Stock Markets

2013 ◽  
Vol 13 (1) ◽  
pp. 3-29 ◽  
Author(s):  
Abdulla Alikhanov
Keyword(s):  
Stock Returns ◽  
Stock Markets ◽  
Spillover Effects ◽  
Volatility Spillover ◽  
Volatility Spillovers ◽  
The Us ◽  
Variance Ratios ◽  
Market Shocks ◽  
European Stock Markets ◽  
The U.S

Abstract The paper investigates mean and volatility spillover effects from the U.S and EU stock markets as well as oil price market into national stock markets of eight European countries. The study finds strong indication of volatility spillover effects from the US-global, EU-regional, and the world factor oil towards individual stock markets. While both mean and volatility spillover transmissions from the US are found to be significant, EU mean spillover effects are negligible. To evaluate the magnitude of volatility spillovers, the variance ratios are also computed and the results draw to attention that the individual emerging countries’ stock returns are mostly influenced by the U.S volatility spillovers rather than EU or oil markets. Additionally, examination of only global and regional stock markets spillover transmissions into European stock markets also confirms the dominating presence of the U.S spillover transmissions. Furthermore, I also implement asymmetric tests on stock returns of eight markets. The stock market returns of Hungary, Poland, Russia and the Ukraine are found to respond asymmetrically to negative and positive shocks in the US stock returns. The weak evidence of asymmetric effects with respect to oil market shocks is found only in the case of Russia and the quantified variance ratios indicate that presence of oil market shocks are relatively higher for Russia. Moreover, a model with dummy variable confirms the effect of European Union enlargement on stock returns only for Romania. Finally, a conditional model suggests that the spillover effects are partially explained by instrumental macroeconomic variables, out of which exchange rate fluctuations play the key role in explaining the spillover parameters rather than total trade to GDP ratios in most investigated countries.

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