Take South Korea, for example, whose stock market capitalization
accounted for 15.5 percent of the MSCI emerging market
index. South Korea’s correlation with the American market has
surged, doubling in the three years from April of 2000 to April of
2003 to 0.607. By December of 2006, the correlation level was
up to 0.649.
At the same time, the correlation level was also rising sharply
in the fifth largest emerging stock market, Brazil, which was 10.5
percent of the emerging market index at the end of 2006. Its correlation
had jumped to 0.705 by May of 2005, more than doubling
from the level in July
accounted for 15.5 percent of the MSCI emerging market
index. South Korea’s correlation with the American market has
surged, doubling in the three years from April of 2000 to April of
2003 to 0.607. By December of 2006, the correlation level was
up to 0.649.
At the same time, the correlation level was also rising sharply
in the fifth largest emerging stock market, Brazil, which was 10.5
percent of the emerging market index at the end of 2006. Its correlation
had jumped to 0.705 by May of 2005, more than doubling
from the level in July
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