English

Characteristics of the Korean stock market correlations

Physics and Society 2008-12-02 v2 Statistical Mechanics Statistical Finance

Abstract

In this study, we establish a network structure of the Korean stock market, one of the emerging markets, with its minimum spanning tree through the correlation matrix. Base on this analysis, it is found that the Korean stock market doesn't form the clusters of the business sectors or of the industry categories. When the MSCI (Morgan Stanley Capital International Inc.) index is exploited, we found that the clusters of the Korean stock market is formed. This finding implicates that the Korean market, in this context, is characteristically different form the mature markets.

Keywords

Cite

@article{arxiv.physics/0504009,
  title  = {Characteristics of the Korean stock market correlations},
  author = {Woo-Sung Jung and Seungbyung Chae and Jae-Suk Yang and Hie-Tae Moon},
  journal= {arXiv preprint arXiv:physics/0504009},
  year   = {2008}
}

Comments

11 pages, 3 figures, revised on June 2005