Yang, Libin; Rea, William; Rea, Alethea - In: International Journal of Financial Studies 5 (2017) 4, pp. 1-13
We present four methods of assessing the diversification potential within a stock market, and two of these are based on principal component analysis. They were applied to the Australian stock exchange for the years 2000 to 2014 and all show a consistent picture. The potential for diversification...