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International Stock market Indices Comovements

By:
Usman Yousaf

* It provides understanding on:

1. 2. 3.
Tools used for Stock Market, around the world. If the financial crises strengthen linkages between int. Stock Market ? The article is about the investigation of inter-relationship between International trades as well as International stock markets.

*Introduction

*International stock market

indices
*A stock market index is a

method of measuring a section of the stock market. Many indices are cited by news or financial services firms and are used as benchmarks, to measure the performance of portfolios such as mutual funds.

*The partiality of two

variables, e.g. the returns from two investments, to move in parallel. coefficient of Co-relation (Statistics).

*It is measured using

*Comovements

*Wavelets
* A wavelet is a wave limited in time; it is a piece of some regular wave. * Looking at this diagram, we can say that the cycle with the period of 117
calendar days has been active on the stock market since the middle of 2007 till the beginning of 2010: So looking at this diagram we can easily say how many cycles are active on the stock market now and the bio of the each cycle.

*Data descriptions
*International stock
market indices:
= UK FTSE
BOVESPA = Brazil Nikkei225 = Japan

DJIA30

= United States

Apart from Brazil all Stock Markets use Time Series plots which shows similar long term movements, and less variability then that of Brazilian Bovespa.

*Financial crises affects stock

markets

*How 2007-2009 Financial

crises spread all around the worlds resulting in:

* Bank Collapses * High Oil Prices * High Interest Rates * Stock Market Crashes

*Conclusion
*Wavelets analysis are very useful to see
beyond.

*Some stock markets even benefit from

the crises.