Multivariate Distribution in the Stock Markets of Brazil, Russia, India, and China

Leovardo Mata Mata, José Antonio Núñez Mora, Ramona Serrano Bautista

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

The purpose of this article is to analyze the dependence between Brazil, Russia, India, and China (BRIC) stock markets, adjusting the multivariate Normal Inverse Gaussian probability distribution (NIG) in 2010–2019 on data yields. Using the estimated parameters, a robust estimator of the correlation matrix is calculated, and evidence is found of the degree of integration in BRIC financial markets during the period 2000–2019. In addition, it is found that the Value at Risk presents a better performance when using the NIG distribution versus multivariate generalized autoregressive conditional heteroscedastic models.

Original languageEnglish
JournalSAGE Open
Volume11
Issue number2
DOIs
StatePublished - 1 Jan 2021

Keywords

  • BRIC
  • dependency
  • multivariate normal inverse Gaussian distribution
  • stock returns

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