ABSTRACT
This study analyzes opportunities for international investment diversification in ASEAN-5 countries, including Indonesia, Malaysia, Singapore, the Philippines, and Thailand. The analysis calculates the value of the combined stock index correlation in five capital markets. According to Markowitz (1952), countries with a negative correlation value are the basis for determining investment. This research was conducted to examine the implementation of AEC policy in 2016 by using a quantitative explanatory survey approach. Data were in the form of time series and weekly transactions from January 2016 to 2018. The results of the first-year analysis after the enactment of AEC in 2016 showed that countries that provide opportunities for international investment diversification in capital markets are only Malaysia and Thailand. Between 2017 and 2018, no capital market had a negative correlation, indicating that the implementation of AEC has not depicted the available investment opportunities in several ASEAN countries
