Analiza privind gradul de integrare a piețelor financiare
Analysis of the integration degree of financial markets

Summary/Abstract: The present study examines the relationship between capital markets in the European Union, particularly those in Central and Eastern Europe (Czech Republic, Estonia, Latvia, Lithuania, Poland, Romania and Hungary) and three of Europe’s most developed Western capital markets (France, Germany, Italy). The analyzed period includes events that affected the financial markets, such as the financial crisis (2008-2012) or the Covid-19 pandemic (2020-present). Using the Pearson and Spearman correlation coefficients, the results obtained indicate a strong correlation depending on the analyzed regions. More specifically, Western European countries show strong correlations in both periods. Developed markets are also moderately correlated with central and eastern markets. An exception is the relationship between the WIG index (Poland) and stock market indices in the region, where there is a weak link. The results of this study are useful both for investors, from a risk diversification perspective, and for regulatory authorities.

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