what role does International Diversification play now with ever increasing correlation among markets effects of US crisis … fall in Asian Mkts + Trouble in Europe ( though not attributable to US crisis)+ Run on ICICI Bank ( one of the largest Pvt Sector Banks in India) followed by stock crashing despite assurances from the Finance Minister Is it worth the transaction costs involved?
There is a whole chapter in Level 3 arguing that there is no correlation in international markets, even in crisis moments.
I wouldn’t be surprised if that chapter is removed from the L3 syllabus by the time I take L3. 
With all the globalization happening, how could they still say international market is not correlated.!!!
CAIA level 1 2008 said there is CORRELATION
Off-course it’s in L3, it’s called " correlation breakdown" (increased correlations during periods of high volatility)
If there is no correlation, whats the point of getting G7 into picture… former trader Wrote: ------------------------------------------------------- > There is a whole chapter in Level 3 arguing that > there is no correlation in international markets, > even in crisis moments.
Does anyone have any hard data on equity markets correlations (BRIC vs. US, EAFE vs US, etc.)?