Journal of
Economics and International Finance

  • Abbreviation: J. Econ. Int. Finance
  • Language: English
  • ISSN: 2006-9812
  • DOI: 10.5897/JEIF
  • Start Year: 2009
  • Published Articles: 348

Full Length Research Paper

The impact of different investment strategies on reducing systematic risk in Tehran stock exchange

Mohammad S. Ezazi, Mostafa Farrokhi Ostad* and Mojtaba Farrokhi Ostad
University of Sistan and Baluchestan, Zahedan, Iran.
Email: [email protected]

  •  Accepted: 05 September 2011
  •  Published: 31 October 2011



Scientific findings indicate that the efficiency of different investment strategies is varied, so financial experts have classified these strategies from diverse perspectives. One of the most common categories as the major academic studies which have been done on this classification is passive, active and momentum strategies, but so far none has been done around correlation of investment strategies. In this study, we have tried to examine concepts in two major sections; first, investigation of investment strategies and second, correlation of strategies in Tehran stock exchange. Our statistical sample  companies is listed in Tehran stock market from 2006 to 2010. We have excluded investment companies, because of high financial leverage and low trading or inactive companies. To study the main and subsidiary hypothesis, we used t-test for two independent samples, to compare, and in second section we used Pearson correlation coefficient. The result indicated that real and legal investors intended to provide portfolios with optimum risk and return in Tehran stock exchange (TSE) and should consider correlating between different investments strategies.


Key words: Correlation, investment strategies, portfolio management, systematic risk.