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

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.