The Significance and Performance of South Korean REITs in a Mixed-Asset Portfolio
This paper examines the risk and return characteristics of K-REITs and the correlation of Korean real estate investment trusts (K-REITs) to other asset classes and their diversification potential in a mixed-asset portfolio. The data were monthly total returns from January 2002 to December 2010 for S...
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Veröffentlicht in: | Journal of real estate literature 2011-01, Vol.19 (2), p.373-390 |
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Format: | Artikel |
Sprache: | eng |
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Online-Zugang: | Volltext |
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Zusammenfassung: | This paper examines the risk and return characteristics of K-REITs and the correlation of Korean real estate investment trusts (K-REITs) to other asset classes and their diversification potential in a mixed-asset portfolio. The data were monthly total returns from January 2002 to December 2010 for South Korean REITs, bonds, shares, and property companies. The results reveal that K-REITs performed poorly over the entire period as compared to shares, bonds, and property companies. Consequently, K-REITs did not represent a substantial weight in a mixed-asset portfolio. However, K-REITs have a low correlation with shares and property companies, suggesting some level of diversification potential for share and property investors. |
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ISSN: | 0927-7544 1573-8809 |
DOI: | 10.1080/10835547.2011.12090300 |