The degree of integration between energy and stock markets is critical for the diversification and risk management … December 2015. The second regime represents periods of high integration, as characterized by limited diversification … opportunities and increased levels of asset price volatility including increased exchange rate volatility. The two regimes also …

individual stock markets and the energy portfolio, which in turn may limit the benefit of risk reduction through diversification …

One reason that investors hold commodities is to receive diversification benefits. However, while an extensive set of … existing studies demonstrate diversification benefits when investors hold international stocks or bonds, they are generally … true and investors earned positive excess returns. The time-varying nature of the benefits that arise from diversification …