Browsing by Author "Yarg, Seher Goren"

Filter results by typing the first few letters
Now showing 1 - 1 of 1
  • Thumbnail Image
    Article
    Citation - WoS: 3
    Citation - Scopus: 6
    To diversify or not to diversify internationally?
    (Elsevier Ltd, 2022) Mehmet Umutlu; Seher Gören Yargı; Yargı, Seher Gören; Yarg, Seher Goren; Umutlu, Mehmet
    Using alternative measures of return correlations we show that neither industry nor country correlations exhibit an ever-increasing trend. Instead correlations jump during recessions with a tendency to revert in stable periods. This keeps international diversification still important despite the financial integration that might have increased correlations permanently. Moreover the mean of industry correlations is statistically lower than that of country correlations suggesting that cross-industry diversification is more efficient. Finally diversifying through industries of emerging markets rather than those of developed markets reduces mean correlations more. These results are robust to several correlation definitions. © 2021 Elsevier B.V. All rights reserved.