This book seeks to answer the essential question of the investment-worthiness of green instruments. It is evident that investing in green and energy-efficient firms will be the most profitable choice for wise investors in the years to come. The reconciliation of the social choice for green technology and investors' choice for gray technology will be automatically achieved once green firms become more profitable than gray ones, in the Indian context. As there has been very little research done in this area, especially in the Indian context, this book addresses that gap.In order to do so, it follows the development of five different portfolios consisting of 100% green, 75% green-25% gray, 50% green-50% gray, 25% green-75% gray and 100% gray stocks, and attempts to answer questions such as: Do green portfolios entail less relative own-risk as compared to their gray counterparts? How effectively do green portfolios avoid market risk? Are green portfolios inherently more stable? Do green portfolios have a higher probability of surviving a financial crisis? Is the performance of green portfolios backed by their fundamentals? Is there any particular technical trading strategy that can ensure a consistently above-average return from these portfolios?
About the Author
Dr. Gagari Chakrabarti completed her Master’s, M.Phil and Doctorate in Economics from the University of Calcutta (India) and is currently working as an Assistant Professor at the prestigious Presidency University (erstwhile Presidency College) in Kolkata, India. Her area of specialization is financial economics including application of econometrics in financial economics. She has several national and international publications to her credit.
Dr. Chitrakalpa Sen is an Assistant Professor in the School of Management, BML Munjal University, Gurgaon, India. An economist by training, Dr. Sen holds an undergraduate degree in economics and a postgraduate degree in economics from the University of Calcutta. He did his PhD from the School of Management, West Bengal University of Technology. He has published in a number of national and international peer-reviewed journals, such as Finance India and Journal of Asset Management and has also authored/co-authored a number of books.
Table of Contents
Chapter 1. Prologue.- Chapter 2. Greens – the obvious choice over the grays?.- The Green indexes.- Greens and Grays in the Indian market.- Green and the gray: a comparative approach in terms of risk and return.- Are the green portfolios inherently unstable? A look into possible non-linearity of portfolio returns.- How shock-proof the green portfolios are: a survival analysis.- Factors affecting Financial stress: Greens versus Grays.- Are the greens obvious choice over the greys? –Some remarks.- Chapter 3. Profits are Forever: A Green Momentum Strategy Perspective.- Beating the market – end of an myth?.- Technical Trading Rules: A Review of the Alternative Methodologies.- Optimal Trading Rules.- Does green really rule the others? A bird’s eye perspective.- Chapter 4. Epilogue.