oil and gas companies. Third, the short term oil price risk is weak, which means that short-term UK oil and gas industry … investors can still diversify their portfolios' risk by adding oil, however, the long-term investors should be more concerned … about oil price risk …

mainly driven by global tail risk rather than local tail risk. World fear is also priced in the crosssection of stock returns …We examine the pricing of tail risk in international stock markets. We find that the tail risk of different countries … is highly integrated. Introducing a new World Fear index, we find that local and global aggregate market returns are …