International Correlation
International
Definition
The degree to which different country stock markets move together, important for global diversification strategies as correlations tend to increase during crisis periods, reducing diversification benefits.
Key Points
- Measures how markets move together
- Increases during global crises
- Important for portfolio diversification
Examples
2008 crisis saw correlations spike to 0.8+Normal times allow better diversificationQuick Info
Category
International
Related Topics
global diversification
correlation analysis
contagion risk
Related Terms
Explore related financial concepts