The Volatility Transmissions Between the Stock Exchange Indices in Turkey and the Major Financial Centers

Volatility Transmissions between the stock exchanges is an important issue for the investors because if they want to decrease the volatility of their portfolios on a global scale, they have to be able to find stock exchanges which do not co-move so strongly and positively. That is a simple result of the modern portfolio theory known as the diversification. A well diversified portfolio should include assets that are not perfectly positively correlated with each other. In the link below is one of the latest papers of mine in which I questioned the volatility transmissions between the leading stock exchange indices in Turkey and the major financial centers. Since it is a very short paper, i am not telling the conclusions upfront... See it yourself at http://www.rassweb.com/wp-content/uploads/PDF/IJEF/Vol-1/Issue-2/IJEF-Issue2-Paper%202.pdf