C/F/29. Determination of correlation of stocks in capital markets. Its purpose is to find the reasons and causes of the comovement of stocks in the same markets.

Summary: The following paper attempts to examine the reasons and causes of comovements (or synchronicity) of stocks in the emerging markets using correlation of stocks. First of all the emerging market will be defined. Secondly, the brief literature review on comovement of stocks will be done. Then comovements in emerging markets will be analysed based on the past research papers on that issue. Furthermore, the effect of comovements among emerging markets on international diversification benefits will be examined. Afterwards, brief conclusion will be done.