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The Efficient Market Hypothesis has been a staple of economics research for decades. In particular, weak-form market efficiency -- the notion that past prices cannot predict future performance -- is strongly supported by econometric…

Statistical Finance · Quantitative Finance 2019-09-12 Samuel Showalter , Jeffrey Gropp

We consider issues of time in automated trading strategies in simulated financial markets containing a single exchange with public limit order book and continuous double auction matching. In particular, we explore two effects: (i) reaction…

Multiagent Systems · Computer Science 2021-03-02 Henry Hanifan , Ben Watson , John Cartlidge , Dave Cliff

I examine changes in matching efficiency and elasticities in Japan's labor market via Hello Work for unemployed workers from January 1972 to April 2024 using a nonparametric identification approach by y Lange and Papageorgiou (2020). I find…

General Economics · Economics 2024-12-31 Suguru Otani

This study investigates the efficiency of some select stock markets. Using an improved wavelet estimator of long range dependence, we show evidence of long memory in the stock returns of some emerging Asian economies. However, developed…

Statistical Finance · Quantitative Finance 2020-04-21 Avishek Bhandari , Bandi Kamaiah

Despite the massive popularity of the Asian Handicap (AH) football (soccer) betting market, its efficiency has not been adequately studied by the relevant literature. This paper combines rating systems with Bayesian networks and presents…

Applications · Statistics 2023-03-24 Anthony Constantinou

This paper investigates the degree of efficiency for the Moscow Stock Exchange. A market is called efficient if prices of its assets fully reflect all available information. We show that the degree of market efficiency is significantly low…

Statistical Finance · Quantitative Finance 2022-08-26 Andrey Shternshis , Piero Mazzarisi , Stefano Marmi

We pose the estimation and predictability of stock market performance. Three cases are taken: US, Japan, Germany, the monthly index of the value of realized investment in stocks, prices plus the value of dividend payments (OECD data). Once…

General Economics · Economics 2023-05-11 Ignacio Escanuela Romana , Clara Escanuela Nieves

In a financial market model, we consider variations of the problem of minimizing the expected time to upcross a certain wealth level. For exponential Levy markets, we show the asymptotic optimality of the growth-optimal portfolio for the…

Portfolio Management · Quantitative Finance 2009-04-14 Constantinos Kardaras , Eckhard Platen

We explore the competitive effects of reaction time of automated trading strategies in simulated financial markets containing a single exchange with public limit order book and continuous double auction matching. A large body of research…

Trading and Market Microstructure · Quantitative Finance 2020-12-01 Henry Hanifan , John Cartlidge

The purpose of this paper is to test the time-invariance of the beta coefficients estimated by the Adaptive Multi-Factor (AMF) model. The AMF model is implied by the generalized arbitrage pricing theory (GAPT), which implies constant beta…

Statistical Finance · Quantitative Finance 2021-04-27 Liao Zhu , Robert A. Jarrow , Martin T. Wells

Cryptocurrency markets exhibit pronounced momentum effects and regime-dependent volatility, presenting both opportunities and challenges for systematic trading strategies. We propose AdaptiveTrend, a multi-component algorithmic trading…

Computational Engineering, Finance, and Science · Computer Science 2026-02-13 Duc Bui , Thanh Nguyen

We investigate the average frequency of positive slope $\nu_{\alpha}^{+}$, crossing for the returns of market prices. The method is based on stochastic processes which no scaling feature is explicitly required. Using this method we define…

Data Analysis, Statistics and Probability · Physics 2016-09-08 G. R. Jafari , M. S. Movahed , S. M. Fazeli , M. Reza Rahimi Tabar , S. F. Masoudi

China's stock market is the largest emerging market all over the world. It is widely accepted that the Chinese stock market is far from efficiency and it possesses possible linear and nonlinear dependence. We study the predictability of…

Statistical Finance · Quantitative Finance 2017-02-08 Huai-Long Shi , Zhi-Qiang Jiang , Wei-Xing Zhou

Previous research explored various conditions of financial markets based on the similarity of correlation structures and classified as market states. We introduce modifications to previous selection criteria for these market states, mainly…

Statistical Finance · Quantitative Finance 2023-09-13 Hirdesh K. Pharasi , Eduard Seligman , Suchetana Sadhukhan , Parisa Majari , Thomas H. Seligman

The stock market has been established since the 13th century, but in the current epoch of time, it is substantially more practicable to anticipate the stock market than it was at any other point in time due to the tools and data that are…

Statistical Finance · Quantitative Finance 2023-10-27 Ryan Chipwanya

Stock exchanges are considered major players in financial sectors of many countries. Most Stockbrokers, who execute stock trade, use technical, fundamental or time series analysis in trying to predict stock prices, so as to advise clients.…

Statistical Finance · Quantitative Finance 2015-02-24 B. W. Wanjawa , L. Muchemi

Whether or not stocks are predictable has been a topic of concern for decades.The efficient market hypothesis (EMH) says that it is difficult for investors to make extra profits by predicting stock prices, but this may not be true,…

Numerical Analysis · Mathematics 2023-07-07 Yueshan Chen , Xingyu Xu , Tian Lan , Sihai Zhang

It has been assumed that arbitrage profits are not possible in efficient markets, because future prices are not predictable. Here we show that predictability alone is not a sufficient measure of market efficiency. We instead propose to…

Statistical Mechanics · Physics 2009-11-10 R. Rothenstein , K. Pawelzik

The adaptive estimation of coexisting temporal vertex (node) and edge signals on graphs is a critical task when a change in edge signals influences the temporal dynamics of the vertex signals. However, the current Graph Signal Processing…

Social and Information Networks · Computer Science 2024-10-24 Yi Yan , Tian Xie , Ercan E. Kuruoglu

In this study, we utilize the Kalman-Filter analysis to assess market efficiency in major stock markets. The Kalman-Filter operates in two stages, assuming that the data contains a consistent trendline representing the true market value…

Computational Finance · Quantitative Finance 2024-04-26 Beier Liu , Haiyun Zhu