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How an investor invests in the market is largely influenced by the market efficiency because if a market is efficient, it is extremely difficult to make excessive returns because in an efficient market there will be no undervalued…

Statistical Finance · Quantitative Finance 2015-10-14 Achal Awasthi , Oleg Malafeyev

Hypothesis of Market Efficiency is an important concept for the investors across the globe holding diversified portfolios. With the world economy getting more integrated day by day, more people are investing in global emerging markets. This…

Computational Finance · Quantitative Finance 2017-09-14 Oleg Malafeyev , Achal Awasthi , Kaustubh S. Kambekar

It is customary that when security prices fully reflect all available information, the markets for those securities are said to be efficient. And if markets are inefficient, investors can use available information ignored by the market to…

Portfolio Management · Quantitative Finance 2017-02-07 Md. Mahmudul Alam , Kazi Ashraful Alam , Md. Gazi Salah Uddin

We study the temporal evolution of the market efficiency in the stock markets using the complexity, entropy density, standard deviation, autocorrelation function, and probability distribution of the log return for Standard and Poor's 500…

Physics and Society · Physics 2008-12-02 Jae-Suk Yang , Wooseop Kwak , Taisei Kaizoji , In-mook Kim

The nature of fluctuations in the Indian financial market is analyzed in this paper. We have looked at the price returns of individual stocks, with tick-by-tick data from the National Stock Exchange (NSE) and daily closing price data from…

Physics and Society · Physics 2012-01-12 Sitabhra Sinha , Raj Kumar Pan

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

This paper, for the first time, focuses on the sector-wise analysis of a stock market through multifractal analysis. We have considered Bombay Stock Exchange, India, and identified two time scales, short ($<200$ days) and long time-scale…

Statistical Finance · Quantitative Finance 2022-10-19 Suchetana Sadhukhan , Poulomi Sadhukhan

Historical daily data for eleven years of the fifty constituent stocks of the NIFTY index traded on the National Stock Exchange have been analyzed to check for the stylized facts in the Indian market. It is observed that while some stylized…

Statistical Finance · Quantitative Finance 2024-05-29 Rituparna Sen , Manavthi S

We introduce a new measure for the capital market efficiency. The measure takes into consideration the correlation structure of the returns (long-term and short-term memory) and local herding behavior (fractal dimension). The efficiency…

Statistical Finance · Quantitative Finance 2013-07-24 Ladislav Kristoufek , Miloslav Vosvrda

The cross-correlations between price fluctuations of 201 frequently traded stocks in the National Stock Exchange (NSE) of India are analyzed in this paper. We use daily closing prices for the period 1996-2006, which coincides with the…

Statistical Finance · Quantitative Finance 2012-01-11 Sitabhra Sinha , Raj Kumar Pan

We study the various sectors of the Bombay Stock Exchange(BSE) for a period of 8 years from April 2006 - March 2014. Using the data of daily returns of a period of eight years we make a direct model free analysis of the pattern of the…

Statistical Finance · Quantitative Finance 2015-04-23 Chandradew Sharma , Kinjal Banerjee

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 examine volatility of an Indian stock market in terms of aspects like participation, synchronization of stocks and quantification of volatility using the random matrix approach. Volatility pattern of the market is found using the BSE…

Physics and Society · Physics 2008-12-02 V. Kulkarni , N. Deo

In this article, the long-term behavior of the stock market index of the New York Stock Exchange is studied, for the period 1950 to 2013. Specifically, the CRSP Value-Weighted and CRSP Equal-Weighted index are analyzed in terms of market…

Trading and Market Microstructure · Quantitative Finance 2015-10-15 Roberto Ortiz , Mauricio Contreras , Marcelo Villena

This chapter presents a calendar rebalancing approach to portfolios of stocks in the Indian stock market. Ten important sectors of the Indian economy are first selected. For each of these sectors, the top ten stocks are identified based on…

Computational Finance · Quantitative Finance 2023-10-17 Jaydip Sen , Arup Dasgupta , Subhasis Dasgupta , Sayantani Roychoudhury

We utilize long-term memory, fractal dimension and approximate entropy as input variables for the Efficiency Index [Kristoufek & Vosvrda (2013), Physica A 392]. This way, we are able to comment on stock market efficiency after controlling…

Statistical Finance · Quantitative Finance 2015-06-16 Ladislav Kristoufek , Miloslav Vosvrda

Summarized by the efficient market hypothesis, the idea that stock prices fully reflect all available information is always confronted with the behavior of real-world markets. While there is plenty of evidence indicating and quantifying the…

Physics and Society · Physics 2020-12-16 Luiz G. A. Alves , Higor Y. D. Sigaki , Matjaz Perc , Haroldo V. Ribeiro

The money market and the capital market of the Indian financial markets have a symbiotic relationship in the development of the Indian economy. The nature and the characteristics of the markets differ to a large extent as the money market…

Statistical Finance · Quantitative Finance 2023-03-21 Bilal Hungund , Shilpa Rastogi

This paper investigates a time-varying version of weak-form market efficiency in the BRICS countries. A moving window test for sample autocorrelations is applied alongside a Kalman filter approach to recover the hidden dynamics of the…

Optimization and Control · Mathematics 2024-03-11 Maria V. Kulikova , David R. Taylor , Gennady Yu. Kulikov

A non-Bayesian time-varying model is developed by introducing the concept of the degree of market efficiency that varies over time. This model may be seen as a reflection of the idea that continuous technological progress alters the trading…

Statistical Finance · Quantitative Finance 2016-10-18 Mikio Ito , Akihiko Noda , Tatsuma Wada
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