Correlations between Stock Exchanges in Emerging Economies: Evidence from the BRICS


  • Ume Kalsoom, Dr. Ismat Ullah ,Zohaib Ahmad, Bushra Bibi


BRICS, stock exchanges, China, South Africa


This paper investigates the correlations between stock exchanges in emerging economies, specifically the BRICS (Brazil, Russia, India, China and South Africa). Using data from 2000 to 2017, the authors examine the correlation structures between these markets in terms of both their returns and volatility. The results indicate that the five markets are highly correlated in terms of their returns, with China and India displaying the highest levels of correlation. The results also suggest that while the markets are relatively correlated in terms of returns, there is less correlation when it comes to volatility. The authors conclude that investors should consider diversifying their portfolios when investing in BRICS markets as.