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



Fig. 3a - Stock market correlation of weekly returns

(Asia; 3 month exp. moving average)

Korea


Malaysia


Indonesia


Thailand


Malaysia


Indonesia


Thailand


Philippines


1.00

0.75

0.50

0.25

0.00

-0.25

-0.50

-0.75

-1.00


1994 1995 1996 1997 1998 1999


1.00

0.75

0.50

0.25

0.00

-0.25

-0.50

-0.75

-1.00

1994 1995 1996 1997 1998 1999











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