Examination of Fundamental Correlations and Linkages Among Stock Markets

The recent international economic recession has proved that there is a strong connection among stock markets, and when a derangement hits one stock market then this problem is being generalized and affects other stock markets. In this paper we attempt to examine the hypothesis of normality in different stock markets and on later stages, to calculate the correlation among them. More specific, we are trying to distinguish the relationship between Greece's stock market and the most important stock markets in Europe, USA and Asia. Moreover, after finding out the correlation between these markets, we try to find out long term relations, using the Johansen cointegration test