Vol. 18 No. 38 (2023)

Artículos

Market risk in asian countries. An analysis before and after the arrival of COVID-19

Published 2023-01-02

  • Héctor Alonso Olivares Aguayo
    • ,
  • Maria de Lourdes Soto Rosales
    • ,
  • José Carlos Trejo García

Héctor Alonso Olivares Aguayo


Maria de Lourdes Soto Rosales
Escuela Superior de Economía del Instituto Politécnico Nacional

José Carlos Trejo García
Escuela Superior de Economía del Instituto Politécnico Nacional

Abstract

The objective of the research is to compare the Market Risk to which Asian countries are exposed before and after the arrival of COVID-19, through the analysis of the Modern Portfolio Theory. The results in terms of risk levels, prior to the arrival of COVID-19, show to be lower than during the global health contingency period. As a limitation, only analysis for Minimum Variance (MV) portfolios of the classic Markowitz approach is considered. The work is original because it shows a comparison between periods before and after COVID-19 considering daily historical prices. It is concluded that, through empirical evidence, the risk levels prior to the COVID-19 health crisis are lower for Asian countries, which is why today more restrictive investment decisions must be made in this type of market, preventing losses.rather than seek windfall profits.

Keywords

COVID-19, Investment portfolios, market risk

PDF (Spanish)

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