Diversification Strategies for Global Equities and Crypto Investment
- By Sam van de Schootbrugge
- 7 min read
Summary
• We summarise two papers in the journal of Finance Research Letters on market correlations in good and bad times.
• In the first, authors show how correlations among cryptocurrencies increase in the tails of daily returns, with smaller cryptos driving much of the price action.
• For the second, we turn to global equity markets, where international diversification remains an option despite rising global financial interconnectedness.
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