Abstract

This paper investigates diversification possibilities for buyers amongst special choice strength markets. We pattern six choice electricity markets namely. For estimations, we use wavelet more than one correlation and wavelet a couple of go correlation proposed via Polanco-Martinez and Fernández-Macho (2014) to locate pairwise correlation at specific funding horizons. Our work contributes in measuring integration degree amongst choice regional power markets throughout exclusive funding horizons. Our effects spotlight that World, Developed, Emerging, EU markets provide most diversification when covered with both Emerging and BRIC electricity markets in a portfolio. Furthermore, diversification advantages are greater outstanding beneath intra-week to monthly funding horizons for all portfolio combinations.