DIVERSIFICATION IN HEALTH CARE INDUSTRY IN US MARKET: AN EMPIRICAL TIME-SERIES ANALYSIS
Alessandra Costa

ABSTRACT
The US healthcare industry represents the fastest growing of the US economy: since it accounts for 17.2% of total GDP, there is no doubts about its attractiveness for investors and it could be useful to analyze the benefits that could arise from diversification portfolio’s strategies. Thus, by using high frequency time-series analysis, we focus on different indices and founds that are able to measure the stock price performances of healthcare industries and its sub-segments, in the US market. We show that models that take into account dynamic correlations among assets better performs respect to traditional models, and allows investors to minimize the variance of their financial portfolio, thus providing the usefulness of time series methods as management tool for investors.

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