Analysis of trade dependence and correlation of market returns to hedge portfolio risk

• Main Author: Zeise, Carl Eric
• Format: Others
• Published: CSUSB ScholarWorks 2006
• Subjects: Foreign Investments; Foreign exchange market; Securities; Investment analysis; Commerce; Investments; Foreign; Securities.; Finance and Financial Management
• Online Access: https://scholarworks.lib.csusb.edu/etd-project/3036; https://scholarworks.lib.csusb.edu/cgi/viewcontent.cgi?article=4072&context=etd-project

The project examines the relationship between trade interdependency and correlation of market returns between the United States and the four emerging economies of Singapore, Malaysia, Thailand and the Philippines. The author analyzed statistical data for trade interdependency and market return to determine if there is a pattern that would provide the basis for increasing the return of a security portfolio without increasing the risk to the investor. The project analysis relied on mathematical formulas to measure the trade relationships between the selected countries and to calculate the measure of return and measure of risk of investing in each emergent market.