Before revision: It has been shown, that the systemic risk contained in financial markets can be indicated by the change of cross-correlation between different indices and stocks. This change is tracked by using principle component analysis (PCA) . We use this technique to investigate the systemic risk contained in European economy by comparing government long term bonds and indices .
After revision: We use principle component analysis (PCA) . We use this technique to investigate the systemic risk contained in European economy by comparing government long term bonds and indices .