Abstract:

The aim of this paper is to present an analysis of the relations between selected stock indices of two developing countries – Russia and China. Moscow Exchange (MOEX) has expanded further the scope for collaboration with the Shanghai Stock Exchange (SSE) as these stock exchanges have signed a strategic cooperation agreement. This strategic cooperation agreement focuses on a number of areas of shared interest between MOEX and SSE that can support and facilitate the further development of these two partners. The impacts of interest rates on a stock exchange provide important implications for monetary policy, risk management practices, financial securities valuation and government policy towards financial markets. As an instrument for the analysis of the relationship between selected Russian stock indices we used the Pearson correlation method. We found the strongest correlation between the MVIS Russia Index and MSCI Russia IMI (0.9278). RTS Index has been correlating strongly with the MVIS Russia Index (0.9193).