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Volatility distribution in the S&P500 Stock Index

Statistical Mechanics 2015-06-25 v1 Statistical Finance

Abstract

We study the volatility of the S&P500 stock index from 1984 to 1996 and find that the volatility distribution can be very well described by a log-normal function. Further, using detrended fluctuation analysis we show that the volatility is power-law correlated with Hurst exponent α0.9\alpha\cong0.9.

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Cite

@article{arxiv.cond-mat/9708143,
  title  = {Volatility distribution in the S&P500 Stock Index},
  author = {Pierre Cizeau and Yanhui Liu and Martin Meyer and C. -K. Peng and H. Eugene Stanley},
  journal= {arXiv preprint arXiv:cond-mat/9708143},
  year   = {2015}
}

Comments

6 pages, 5 figures