A Latent Factor Model with Global, Country, and Industry Shocks for International Stock Returns /

We estimate a latent factor model that decomposes international stock returns into global, country-, and industry-specific shocks and allows for stock-specific exposures to these shocks. We find that across stocks there is substantial dispersion in these exposures, which is partly explained by the e...

Täydet tiedot

Bibliografiset tiedot
Päätekijä: Del Negro, Marco
Muut tekijät: Brooks, Robin
Aineistotyyppi: Aikakauslehti
Kieli:English
Julkaistu: Washington, D.C. : International Monetary Fund, 2005.
Sarja:IMF Working Papers; Working Paper ; No. 2005/052
Linkit:Full text available on IMF
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100 1 |a Del Negro, Marco. 
245 1 2 |a A Latent Factor Model with Global, Country, and Industry Shocks for International Stock Returns /  |c Marco Del Negro, Robin Brooks. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2005. 
300 |a 1 online resource (34 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a We estimate a latent factor model that decomposes international stock returns into global, country-, and industry-specific shocks and allows for stock-specific exposures to these shocks. We find that across stocks there is substantial dispersion in these exposures, which is partly explained by the extent to which firms operate across countries. We show that portfolios consisting of stocks with low exposures to country shocks achieve substantial variance reduction relative to the global market, both in- and out-of-sample. The shock exposures are thus a stock-selection device for international portfolio diversification. 
538 |a Mode of access: Internet 
700 1 |a Brooks, Robin. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2005/052 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2005/052/001.2005.issue-052-en.xml  |z IMF e-Library