Global stock indexes are a useful way of assessing the overall health of global markets. For example, if the United States market is performing well, it can be a good indicator of the health of the economy of other countries. In this article we will look at some of the most important global stock indexes and what the future holds for them.
Athens Stock Exchange General Index
The Athens Stock Exchange General Index is a cap-weighted index that tracks stocks in the Greek stock market. Its most notable attribute is that it is one of the few global stock indexes that has made a significant recovery from the depths of the 2008 financial crisis.
To get a feel for how well the index is doing, we conducted a comprehensive study of its constituent stocks. For each of its constituent companies, we measured their annual returns, market capitalization and beta coefficients. By looking at these metrics, we discovered that the ASC’s general index has actually done better than its competitors.
Unlike the other stock market indexes, the ASC’s general index has performed well in both the long and short term. During the first half of 2016, it recorded a gain of 16.5% compared to 8.5% during the same period in 2015. In terms of its long-term performance, the index is currently outperforming its European peers.
DAX futures are one of the most widely used stock market index derivatives. They allow investors to participate in the performance of the German benchmark index.
The DAX is a market capitalization-weighted index of the top 40 companies in the German stock market. These companies include Volkswagen, Siemens, BMW, and Allianz. It also serves as the underlying for more than 150,000 financial products.
As a result, the DAX is considered one of the most important indices in the world. Its price typically provides tight trading spreads, long hours of trading, and relatively high liquidity.
There are two types of DAX futures: the DAX(r) and the Micro-DAX(r). Both are similar, but differ in their contract sizes. A standard DAX contract is EUR5,000 per point, while the Micro-DAX(r) contract is EUR1,000 per point.
US markets fared better than most other global markets
In a nutshell, there were a few squawkers on hand, albeit in the shadows of the big dogs. The notables include the Fed, the Chinese and the ECB, all of which have their own special brand of madness. A number of smaller players in their respective spheres managed to eke out a win, albeit a grumpy one at that. Nonetheless, the top dogs still have the upper hand in the war for the top dog trophy. After a bit of a scare in the first quarter of the year, things looked up in the second, thanks to some in-house wizardry and a good dose of market discipline. There were a few notable blips, notably the Japanese, but the Japanese still had their best year on record.
Gold is a safe haven and hedging asset
Gold has been a safe haven and hedging asset for global stock indexes since ancient times. During the global financial crisis, investors were seeking ways to hedge their volatility risk, and gold emerged as a safe haven.
The benefits of using hedges, such as gold, to manage an equity-commodity portfolio are still a matter of debate. However, investors are increasingly recognizing the benefits of diversifying their investment horizons.
Some analysts are questioning whether gold can actually be considered a safe haven asset. Although it is not the most reliable, it can protect against stock market shocks. As such, more investors are incorporating gold into their portfolios.
Nevertheless, more studies are needed to understand the hedging properties of gold. This is particularly true in the case of emerging markets. In some instances, gold may not be the best choice, because the stock markets of these economies are still in their infancy.
Multivariate Garch DCC models
The GARCH family of multivariate models is one of the most important in the finance literature. These models are used to investigate the volatile interaction between financial variables. They are especially useful in contagion analyses, where several data series may interact with each other.
Generally, GARCH models feature weak persistent behavior over extended time horizons. However, severe shocks can challenge these models.
The DCC-GARCH model, developed by Engle and Sheppard in 2002, provides a dynamic and flexible solution for evaluating time-varying correlations. This model has also been applied to value-at-risk portfolio analysis. It has shown significant results at a 5% significance level.
One of the main advantages of the DCC-GARCH model is its ability to handle large covariance matrices. In addition, it has the capacity to identify cross-market volatility shocks.