نبذة مختصرة : Several decades of research have investigated ways to effectively diversify the investment portfolio. In particular, stocks and bonds and their interconnection are examined in several studies, as the same macroeconomic and uncertainty factors drive their price fluctuations. Previous results have presented the long-term stock-bond correlation to be slightly negative in developed markets. Market uncertainty, on the other hand, is generally found to have a strong negative effect on correlation in the short term. In the past, these results have served as good guidelines for diversifying the investment portfolio over time. However, in the 21st century, concerns related to environmental and social issues have made investment decisions increasingly dependent on non-financial aspects. With this trend, new asset classes were developed on the market, where "green" bonds and stocks focus specifically on preventing and reducing social and sustainable development issues. Thus, traditional allocation recommendations are no longer accurate enough when an increasing number of investment decisions are made according to ethical principles in addition to financial assessment. Green bonds, which were introduced to investors for the first time in 2007, have become one of the most effective tools for financing projects that support sustainable development. Green bonds have experienced explosive growth in recent years, which has inspired the literature to increasingly explore the correlation of green bonds with other asset classes. According to research results, in the long term, green bonds behave like conventional bonds and thus diversify the stock portfolio. On the other hand, during market turbulence, green bonds prove to positively correlate with equity markets. This way, the diversification benefits from green bonds are expected to be achieved in the long term. However, the recent literature has yet to actually examine whether the replacement of conventional bonds with green bonds would give the investor a better diversification ...
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