Modelling Stock Market Dependence Between Nigeria’s and Other Stock Markets Using Unconditional Copula

Modern risk management and portfolio allocation require reliable modelling of dependence among markets and risky assets. The dependence structure has practical implications that include asset pricing, risk management, hedging, contagion, portfolio allocation, international diversification and market integration. Using the wrong model for dependence between assets or markets can result in incorrect portfolio diversification choices and may intensify systemic risk