TITLE:
Portfolios, Stock Market Indices and Investment Strategies
AUTHORS:
Yihan Wu
KEYWORDS:
Stock Market Prediction, Financial Crises, Portfolio Analysis, Time Series Analysis, Emerging Markets
JOURNAL NAME:
Open Journal of Business and Management,
Vol.13 No.3,
May
22,
2025
ABSTRACT: Introduction: In an increasingly interconnected global economy, investors seek strategies to preserve capital and enhance growth, particularly during financial crises. This study investigates capital hedging strategies and stock market index prediction, focusing on the distinct behaviors of stock markets in India, Singapore, and Qatar. Despite globalization, these markets exhibit unique trends influenced by factors such as exchange rates and commodity prices. Methods: We utilize a dataset from Bloomberg containing daily stock market indices and macroeconomic signals from major global markets. Time series analysis, including stationarity tests and regression modeling, is applied to identify key economic indicators that impact stock market performance. Additionally, we conduct portfolio simulations to determine optimal asset allocations under different crisis scenarios. The study quantitatively analyzes three major financial crises—the 2008 global financial crisis, the 2015-2016 market downturn, and the 2020 COVID-19 crash—to assess market responses and recovery patterns. Results: Empirical findings reveal that stock markets retain regional characteristics despite global integration. The Indian stock market’s prolonged bull run correlates strongly with exchange rate trends, while Qatar’s market is significantly influenced by oil prices. Portfolio analysis suggests that diversification across regions reduces risk and enhances stability during crises. Conclusion: This study contributes to the literature on regional market performance, crisis-driven market dynamics, and stock market prediction. The findings offer valuable insights for investors in designing resilient portfolios and understanding key economic factors driving stock market fluctuations.