Logo image
Regional and global spillovers and diversification opportunities in the GCC equity sectors
Journal article   Peer reviewed

Regional and global spillovers and diversification opportunities in the GCC equity sectors

Mehmet Balcılar, Rıza Demirer and Shawkat Hammoudeh
Emerging markets review, v 24(24), pp 160-187
Sep 2015

Abstract

Financial integration GCC-wide equity sectors International portfolio diversification Multivariate regime-switching Time-varying correlations
This paper examines the international diversification benefits of bloc-wide equity sectors in the oil-rich Gulf Cooperation Council (GCC) countries by comparing alternative spillover models that encompass local, regional and global factors. Some GCC-wide equity sectors/subsectors are found to display segmentation from global markets during periods of high and extreme market volatility, and thus can serve as safe havens for international portfolio investors during such periods. The in- and out-of-sample portfolio analyses further suggest that supplementing global portfolios with positions in the GCC markets yields significant international diversification benefits, consistently offering much improved risk-adjusted returns across the alternative spillover models.

Metrics

11 Record Views
31 citations in Scopus

Details

UN Sustainable Development Goals (SDGs)

This publication has contributed to the advancement of the following goals:

#8 Decent Work and Economic Growth

InCites Highlights

Data related to this publication, from InCites Benchmarking & Analytics tool:

Collaboration types
Domestic collaboration
International collaboration
Web of Science research areas
Business, Finance
Economics
Logo image