Uluslararası Alanya İşletme Fakültesi Dergisi

Öz

For the purpose of reducing the risks of the portfolio, the activities of international investors in various countries’ stock markets have increased as a result of the increasing level of integration since the 1980s of the financial markets. The aim of this study is to determine the level of interaction and integration between the stock markets of nine Balkan states and three developed countries. In this context, the weekly closing values of the indexes representing these countries’ stock markets from January 2012 to January 2015 are analyzed. The results of the study indicate that, Turkey and the other countries’ stock markets do not liaise with each other; therefore, in the case of investments in the Balkan security markets, the risk of the portfolio can be reduced through the diversification of the international portfolio and a higher income shall be provided.