Time-Varying Benefits of International Diversification for Finnish Investor: Country-Specific Strategy Concentrating on Emerging Markets

The main objective of this study is to investigate whether the Finnish investors’ country-specific strategy concentrating on emerging markets provides diversification benefits. We also analyze whether the benefits of international diversification has been diminished after periods of high volatility caused by different market crisis. The objective is investigated with three methods: Correlation coefficients, rolling correlations added with OLS trend-lines and Box’s M statistic. All the empirical tests are analyzed and calculated with logarithmic returns of weekly time series data from Friday closing values between January 1995 and December 2007. The number of weekly observations is 678. The data type is total return indices of different countries. Data is collected from DataStream and provided by Datastream Financial. Countries investigated are Finland, Argentina, Brazil, Chile, China, India, Mexico, Poland, Russia, South Africa, South Korea, Thailand and Turkey. The current data is quoted both in U.S. Dollars and local currencies. The empirical results of this thesis show that the correlation coefficients are time-varying across Finland and 12 emerging market countries. Although the correlations have risen from 1995 to 2007, there can be found sub-periods where the correlation has declined from earlier period. The results also indicate that a Finnish investor constructing a portfolio of emerging market countries cannot rely on the correlation coefficients estimated from historical data because of the instability of correlation matrices.

Determination of sugars and organic acids in pulp samples by capillary electrophoresis with UV detection

This MSc work was done in the project of BIOMECON financed by Tekes. The prime target of the research was, to develop methods for separation and determination of carbohydrates (sugars), sugar acids and alcohols, and some other organic acids in hydrolyzed pulp samples by capillary electrophoresis (CE) using UV detection. Aspen, spruce, and birch pulps are commonly used for production of papers in Finland. Feedstock components in pulp predominantly consist of carbohydrates, organic acids, lignin, extractives, and proteins. Here in this study, pulps have been hydrolyzed in analytical chemistry laboratories of UPM Company and Lappeenranta University in order to convert them into sugars, acids, alcohols, and organic acids. Foremost objective of this study was to quantify and identify the main and by-products in the pulp samples. For the method development and optimization, increased precision in capillary electrophoresis was accomplished by calculating calibration data of 16 analytes such as D-(-)-fructose, D(+)-xylose, D(+)-mannose, D(+)-cellobiose, D-(+)-glucose, D-(+)-raffinose, D(-)-mannitol, sorbitol, rhamnose, sucrose, xylitol, galactose, maltose, arabinose, ribose, and, α-lactose monohydratesugars and 16 organic acids such as D-glucuronic, oxalic, acetic, propionic, formic, glycolic, malonic, maleic, citric, L-glutamic, tartaric, succinic, adipic, ascorbic, galacturonic, and glyoxylic acid. In carbohydrate and polyalcohol analyses, the experiments with CE coupled to direct UV detection and positive separation polarity was performed in 36 mM disodium hydrogen phosphate electrolyte solution. For acid analyses, CE coupled indirect UV detection, using negative polarity, and electrolyte solution made of 2,3 pyridinedicarboxylic acid, Ca2+ salt, Mg2+ salts, and myristyltrimethylammonium hydroxide in water was used. Under optimized conditions, limits of detection, relative standard deviations and correlation coefficients of each compound were measured. The optimized conditions were used for the identification and quantification of carbohydrates and acids produced by hydrolyses of pulp. The concentrations of the analytes varied between 1 mg – 0.138 g in liter hydrolysate.

Biogeochemistry in acid sulphate soil landscapes and small urban centres in Western Finland

The overall purpose of this thesis was to increase the knowledge on the biogeochemistry of rural acid sulphate (AS) soil environments and urban forest ecosystems near small towns in Western Finland. In addition, the potential causal relationship between the distribution of AS soils and geographical occurence of multiple sclerosis (MS) disease was assessed based on a review of existing literature and data. Acid sulphate soils, which occupy an area of approximately 17–24 million hectare worldwide, are regarded as the nastiest soils in the world. Independent of the geographical locality of these soils, they pose a great threat to their surrounding environment if disturbed. The abundant metal-rich acid drainage from Finnish AS soils, which is a result of sulphide oxidation due to artificial farmland drainage, has significant but spatially and temporally variable ecotoxicological impacts on biodiversity and community structure of fish, benthic invertebrates and macrophytes. This has resulted in mass fish kills and even eradication of sensitive fish species in affected waters. Moreover, previous investigations demonstrated significantly enriched concentrations of Co, Ni, Mn and Al, metals which are abundantly mobilised in AS soils, in agricultural crops (timothy grass and oats) and approximately 50 times higher concentrations of Al in cow milk originating from AS soils in Western Finland. Nevertheless, the results presented here demonstrate, in general, relatively moderate metal concentrations in oats and cabbage grown on AS soils in Western Finland, although some of the studied fields showed anomalous values of metals (e.g. Co and Ni) in both the soil and target plants (especially oats), similar to that of the previous investigations. The results indicated that the concentrations of Co, Ni, Mn and Zn in oats and Co and Zn in cabbage were governed by soil geochemistry as these metals were correlated with corresponding concentrations extracted from the soil by NH4Ac-EDTA and NH4Ac, respectively. The concentrations of Cu and Fe in oats and cabbage were uncorrelated to that of the easily soluble concentrations in the soils, suggesting that biological processes (e.g. plant-root processes) overshadow geochemical variation. The concentrations of K and Mg in cabbage, which showed a low spread and were strongly correlated to the NH4Ac extractable contents in the soil, were governed by both the bioavailable fractions in the topsoil and plant-uptake mechanisms. The plant´s ability to regulate its uptake of Ca and P (e.g. through root exudates) seemed to be more important than the influence of soil geochemistry. The distribution of P, K, Ca, Mg, Mn and S within humus, moss and needles in and around small towns was to a high degree controlled by biological cycling, which was indicated by the low correlation coefficients for P, K, Ca, Mg and S between humus and moss, and the low spread of these nutrients in moss and needles. The concentration variations of elements in till are mainly due to natural processes (e.g. intrusions, weathering, mineralogical variations in the bedrock). There was a strong spatial pattern for B in humus, moss and needles, which was suggested to be associated with anthropogenic emissions from nearby town centres. Geogenic dust affected the spatial distribution of Fe and Cr in moss, while natural processes governed the Fe anomaly found in the needles. The spatial accumulation patterns of Zn, Cd, Cu, Ni and Pb in humus and moss were strong and diverse, and related to current industry, the former steel industry, coal combustion, and natural geochemical processes. An intriguing Cu anomaly was found in moss. Since it was located close to a main railway line and because the railway line´s electric cables are made of Cu, it was suggested that the reason for the Cu anomaly is corrosion of these cables. In Western Finland, where AS soils are particularly abundant and enrich the metal concentrations of stream waters, cow milk and to some extent crops, an environmental risk assessment would be motivated to elucidate if the metal dispersion affect human health. Within this context, a topic of concern is the distribution of multiple sclerosis as high MS prevalence rates are found in the main area of AS soils. Regionally, the AS soil type in the Seinäjoki area has been demonstrated to be very severe in terms of metal leaching, this area also shows one of the highest MS rates reported worldwide. On a local scale, these severe AS soil types coincide well with the corresponding MS clustering along the Kyrönjoki River in Seinäjoki. There are reasons to suspect that these spatial correlations are causal, as multiple sclerosis has been suggested to result from a combination of genetic and environmental factors.

Kansainvälisen osakeportfolion hajauttamishyödyt eri suhdannesykleissä

Tämän tutkimuksen tavoitteena on selvittää onko kansainvälisen hajauttamisen hyöty heikentynyt globaalisti ajan kuluessa. Tutkimusongelmaan pyritään löytämään vastaus korrelaatioanalyysillä sekä Box M-testillä. Teoreettisena viitekehyksenä käytetään Markowitzin luomaa modernia portfolioteoriaa, kansainväliseen hajautukseen liittyvää kirjallisuutta sekä aiheesta aiemmin tehtyjä tutkimuksia. Empiirisenä tutkimusaineistona käytetään Thomson Datastreamin tuottamia kokonaistuottoindeksejä. Indeksit ovat yhdeksältä eri markkina-alueelta ja 30 eri maasta. Maat on jaoteltu 18 kehittyneeseen ja 12 kehittyvään maahan.kaikki tutkielmassa käytetyt tuottoaikasarjat ovat dollarimääräisiä. Tutkimusaineisto kattaa vuodet 1995-2009 sisältäen 783 viikottaista havaintoa, kullekin tuottoindeksille. Tutkimustulosten mukaan kansainvälisen hajauttamisen edut ovat suuremmat sijoitettaessa kehittyville markkinoille, kuin pelkästään kehittyneille markkinoille sijoitettaessa. Tutkimusperiodin alkupuolella kehittyvillä markkinoilla on ollut saatavissa huomattavasti enemmän hajautushyötyä, mutta suhteellinenhyöty suhteessa kehittyneisiin markkinoihin vähenee tultaessa lähemmäs nykyhetkeä. Korrelaatiot ovat nousseet koko ajanjaksolla, mutta on myös ollut osaperiodeja, jolloin korrelaatiokertoimet ovat laskeneet.

Suomen taloussuhdanteiden kansainvälinen yhteisvaihtelu

Taloussuhdanteiden yhteisvaihtelun tutkimus on eräs taloustieteiden vanhimmista tutkimusaloista. Finanssikriisi ja euroalueen kohtaamat talousvaikeudet ovat kuitenkin nostaneet aiheen jälleen hyvin ajankohtaiseksi. Kuluneiden kahdenkymmenen vuoden aikana tutkimusalueesta on muodostunut erittäin laaja lukuisine näkökulmineen ja debatteineen. Tutkielman aiheena on Suomen taloussuhdanteiden kansainvälinen yhteisvaihtelu valittujen vertailumaiden kanssa. Vertailumaat ovat Ruotsi, Norja, Tanska, Saksa, Ranska, Iso-Britannia ja Yhdysvallat. Tutkielmaan valitut taloussuhdannetta kuvaavat muuttujat ovat reaalinen bruttokansantuote, yksityinen kokonaiskulutus ja teollisuustuotantoindeksi. Aineisto on kerätty Lappeenrannan tiedekirjaston Nelli-portaalin OECD iLibrary-tietokannasta ja se kattaa aikajakson 1960 Q1- 2014 Q4. Maakohtainen taloussuhdanne operationalisoidaan laskemalla ensimmäinen logaritminen differenssi, joka edustaa perinteistä reaalisuhdanneteoreettisen koulukunnan näkemystä taloussuhdanteesta. Tutkielman näkökulmaksi valitaan yhden maan näkökulma, joka on hieman harvinaisempi näkökulma verrattuna laajempiin alueellisiin näkökulmiin. Tutkimusmenetelminä käytetään Pearsonin korrelaatiokerrointa, Engle-Granger- sekä Johansenin yhteisintegroituvuustestejä ja VAR-GARCH-BEKK –mallilla laskettua dynaamista korrelaatiota, jotka lasketaan Suomen ja vertailumaiden välille maapareittain. Tuloksia tulkitaan suomalaisen vientiä vertailumaihin suunnittelevan yrityksen näkökulmasta. Tutkielman tulosten perusteella Engle-Grangerin menetelmällä laskettu samanaikainen yhteisintegroituvuus Suomen ja vertailumaiden välillä on epätodennäköistä. Kun yhteisintegroituvuuden annetaan riippua myös viiveistä, saadaan Johansenin menetelmällä yhteisintegroituvuus Suomen ja Yhdysvaltojen välille reaalisessa bruttokansantuotteessa, Suomen ja Saksan, Suomen ja Ranskan sekä Suomen ja Yhdysvaltojen välille yksityisessä kokonaiskulutuksessa sekä Suomen ja Norjan välille teollisuustuotantoindeksissä. Tulosten tulkintaa vaikeuttavat niiden malliriippuvuus ja informaatiokriteerien toisistaan poikkeavat mallisuositukset, joten yhteisintegroituvuus on mahdollinen myös muiden maaparien kohdalla. Dynaamisten korrelaatiokuvaajien perusteella maaparien välisen yhteisvaihtelun voimakkuus muuttuu ajan mukana. Finanssikriisin aikana kokonaistuotannossa on havaittavissa korkeampi korrelaatio, mutta korrelaatio palaa sen jälkeen perustasolleen. Kokonaiskulutuksen korrelaatio on kokonaistuotantoa alhaisempi ja pitemmissä aikajaksoissa vaihtelevaa.