Identify and Investment Strategy That Seeks to Materialise Gains Through Portfolio Diversification

You are required to present a detailed analysis looking at the relationship between two financial variables. The aim of your report is to identify and investment strategy that seeks to materialise gains through portfolio diversification. Your report should be supported with appropriate time series analysis, research questions and hypothesis aiming to identify inter linkages between your variables, and their implications for portfolio management. Develop a general report highlighting your findings and recommendations to the investor. Be sure to link your findings to relevant economic and financial theories relevant topics Stationarity ARIMA models Cointegration Causality Johansen Cointegration Test VAR VECM Contagion