Diversification across economic sectors and implication on portfolio investments in Malaysia
Due to the increasing efforts towards regional and global economic integration, the effects of "country specific" factors are becoming less important in managing domestic portfolio investment. Consequently the concept of diversification across economic sectors has received attention in lit...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Faculty of Economics and Management, Universiti Putra Malaysia
2006
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| Online Access: | http://psasir.upm.edu.my/id/eprint/708/ http://psasir.upm.edu.my/id/eprint/708/1/Diversification%20across%20economic%20sectors%20and%20implication%20on%20portfolio%20investments%20in%20Malaysia.pdf |
| _version_ | 1848838843816476672 |
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| author | Mohamad, Shamser Hassan, Taufiq Muhamad Sori, Zulkarnain |
| author_facet | Mohamad, Shamser Hassan, Taufiq Muhamad Sori, Zulkarnain |
| author_sort | Mohamad, Shamser |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Due to the increasing efforts towards regional and global economic integration, the effects of "country specific" factors are becoming less important in managing domestic portfolio investment. Consequently the concept of diversification across economic sectors has received attention in literature. This paper analyzes the opportunity for diversification across different economic sectors for long-term investment using sectorial indices. The findings indicate high but unstable correlation of returns between indices. this imply that investment in one or two sectors of the stocks market face higher total risk than in the past due to the increasing "sector" effect on portfolio investment. |
| first_indexed | 2025-11-15T07:02:00Z |
| format | Article |
| id | upm-708 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T07:02:00Z |
| publishDate | 2006 |
| publisher | Faculty of Economics and Management, Universiti Putra Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-7082015-10-26T02:33:20Z http://psasir.upm.edu.my/id/eprint/708/ Diversification across economic sectors and implication on portfolio investments in Malaysia Mohamad, Shamser Hassan, Taufiq Muhamad Sori, Zulkarnain Due to the increasing efforts towards regional and global economic integration, the effects of "country specific" factors are becoming less important in managing domestic portfolio investment. Consequently the concept of diversification across economic sectors has received attention in literature. This paper analyzes the opportunity for diversification across different economic sectors for long-term investment using sectorial indices. The findings indicate high but unstable correlation of returns between indices. this imply that investment in one or two sectors of the stocks market face higher total risk than in the past due to the increasing "sector" effect on portfolio investment. Faculty of Economics and Management, Universiti Putra Malaysia 2006-12 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/708/1/Diversification%20across%20economic%20sectors%20and%20implication%20on%20portfolio%20investments%20in%20Malaysia.pdf Mohamad, Shamser and Hassan, Taufiq and Muhamad Sori, Zulkarnain (2006) Diversification across economic sectors and implication on portfolio investments in Malaysia. International Journal of Economics and Management, 1 (1). pp. 155-172. ISSN 1803-836X http://econ.upm.edu.my/ijem/vol1_no1.htm |
| spellingShingle | Mohamad, Shamser Hassan, Taufiq Muhamad Sori, Zulkarnain Diversification across economic sectors and implication on portfolio investments in Malaysia |
| title | Diversification across economic sectors and implication on portfolio investments in Malaysia |
| title_full | Diversification across economic sectors and implication on portfolio investments in Malaysia |
| title_fullStr | Diversification across economic sectors and implication on portfolio investments in Malaysia |
| title_full_unstemmed | Diversification across economic sectors and implication on portfolio investments in Malaysia |
| title_short | Diversification across economic sectors and implication on portfolio investments in Malaysia |
| title_sort | diversification across economic sectors and implication on portfolio investments in malaysia |
| url | http://psasir.upm.edu.my/id/eprint/708/ http://psasir.upm.edu.my/id/eprint/708/ http://psasir.upm.edu.my/id/eprint/708/1/Diversification%20across%20economic%20sectors%20and%20implication%20on%20portfolio%20investments%20in%20Malaysia.pdf |