Faculty Scholarship 1994 - Present
Global Portfolio Diversification Implications of the Comovements of Latin American Stock Markets with the World's Other Stock Markets
The co-movements of seven Latin American stock markets with the world�s other stock markets are studied by using rolling correlation analysis and Principal Components Analysis (PCA) with weekly index returns data for the June 1995-May 2005 period. Our findings indicate that Latin American stock markets are excellent investment opportunities for global portfolio diversification to investors in the world�s developed stock markets. We find that the Colombian, Venezuelan, Peruvian, and Argentine stock markets are the best Latin American portfolio diversification prospects for U.S. investors.