Hedging Global and Country-Specific Geopolitical Risks With South Korean Stocks - A Predictability Approach

Tirimisiyu Oloko, Abeeb Olaniran and Lukman Lasisi

Asian Economics Letters, 2021, vol. 2, issue 3, 1-5

Abstract: In this study, we examine the potential of South Korean stocks to hedge against global and country-specific geopolitical risks. A predictability approach with a feasible quasi generalized least square (FQGLS) estimator was employed. Our results reveal that global and country-specific geopolitical risks are good predictors of South Korean stock market returns. This implies that the South Korean stock market provides a good hedge against global and South Korean geopolitical risks.

Keywords: geopolitical risk; south korean stocks; fqgls estimator (search for similar items in EconPapers)
JEL-codes: G15 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (5)

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Asian Economics Letters is currently edited by Chun-Ping Chang (Shih Chien University, Taiwan) and Professor Chien-Chiang Lee (Nanchang University, China)

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