Correlation Analysis of Financial Contagion: What One Should Know Before Running a Test



Fig. 2a - Stock market covariance of weekly returns

(Asia; 3 month exp. moving average)

Korea


Malaysia


Indonesia


Thailand


Malaysia


Indonesia


Thailand


Philippines



0.48

0.40

0.32

0.24

0.16

0.08

0.00

-0.08

-0.16



1994 1995 1996 1997 1998 1999


0.64

0.56

0.48

0.40

0.32

0.24

0.16

0.08

0.00

-0.08



1994 1995 1996 1997 1998 1999


0.7


0.6 -

0.5 -

0.4 -

0.3 -

0.2 -

0.1 -

0.0

-0.1

Iiiiiiiiiiiiiiiiiiiii

1994 1995 1996 1997 1998 1999




0.30

0.25

0.20

0.15

0.10

0.05

0.00

-0.05

-0.10

-0.15



1994 1995 1996 1997 1998 1999



0.48

0.40

0.32

0.24

0.16

0.08

0.00

-0.08



1994 1995 1996 1997 1998 1999


0.60

0.48

0.36

0.24

0.12

0.00

-0.12

-0.24



1994 1995 1996 1997 1998 1999




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