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The Epps effect, the decrease of correlations between stock returns for short time windows, was traced back to the trading asynchronicity and to the occasional lead-lag relation between the prices. We study pairs of stocks where the latter…

物理与社会 · 物理学 2009-01-11 Bence Toth , Janos Kertesz

We analyse the dependence of stock return cross-correlations on the sampling frequency of the data known as the Epps effect: For high resolution data the cross-correlations are significantly smaller than their asymptotic value as observed…

统计金融 · 定量金融 2009-10-26 Bence Toth , Janos Kertesz

A detailed analysis of correlation between stock returns at high frequency is compared with simple models of random walks. We focus in particular on the dependence of correlations on time scales - the so-called Epps effect. This provides a…

交易与市场微观结构 · 定量金融 2015-05-20 Iacopo Mastromatteo , Matteo Marsili , Patrick Zoi

According to the leading models in modern finance, the presence of intraday lead-lag relationships between financial assets is negligible in efficient markets. With the advance of technology, however, markets have become more sophisticated.…

统计金融 · 定量金融 2014-01-03 Chester Curme , Michele Tumminello , Rosario N. Mantegna , H. Eugene Stanley , Dror Y. Kenett

Recently the interest of researchers has shifted from the analysis of synchronous relationships of financial instruments to the analysis of more meaningful asynchronous relationships. Both of those analyses are concentrated only on…

统计金融 · 定量金融 2014-06-18 Paweł Fiedor

We study the time dependent cross correlations of stock returns, i.e. we measure the correlation as the function of the time shift between pairs of stock return time series using tick-by-tick data. We find a weak but significant effect…

统计力学 · 物理学 2009-11-07 L. Kullmann , J. Kertesz , K. Kaski

In addressing the question of the time scales characteristic for the market formation, we analyze high frequency tick-by-tick data from the NYSE and from the German market. By using returns on various time scales ranging from seconds or…

统计力学 · 物理学 2009-11-10 J. Kwapien , S. Drozdz , J. Speth

We review the decomposition method of stock return cross-correlations, presented previously for studying the dependence of the correlation coefficient on the resolution of data (Epps effect). Through a toy model of random walk/Brownian…

统计金融 · 定量金融 2009-01-11 Bence Toth , Balint Toth , Janos Kertesz

We present two statistical causes for the distortion of correlations on high-frequency financial data. We demonstrate that the asynchrony of trades as well as the decimalization of stock prices has a large impact on the decline of the…

统计金融 · 定量金融 2010-10-01 Michael C. Münnix , Rudi Schäfer , Thomas Guhr

The gain-loss asymmetry, observed in the inverse statistics of stock indices is present for logarithmic return levels that are over $2\%$, and it is the result of the non-Pearson type auto-correlations in the index. These non-Pearson type…

统计金融 · 定量金融 2016-08-24 Bulcsú Sándor , Ingve Simonsen , Bálint Zsolt Nagy , Zoltán Néda

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…

物理与社会 · 物理学 2008-12-02 Jae-Suk Yang , Wooseop Kwak , Taisei Kaizoji , In-mook Kim

Lead/lag relationships are an important stylized fact at high frequency. Some assets follow the path of others with a small time lag. We provide indicators to measure this phenomenon using tick-by-tick data. Strongly asymmetric…

交易与市场微观结构 · 定量金融 2012-01-19 Nicolas Huth , Frédéric Abergel

We study historical correlations and lead-lag relationships between individual stock risk (volatility of daily stock returns) and market risk (volatility of daily returns of a market-representative portfolio) in the US stock market. We…

统计金融 · 定量金融 2014-09-03 Stanislav S. Borysov , Alexander V. Balatsky

The cross correlation matrix between equities comprises multiple interactions between traders with varying strategies and time horizons. In this paper, we use the Maximum Overlap Discrete Wavelet Transform to calculate correlation matrices…

统计金融 · 定量金融 2010-01-05 Thomas Conlon , Heather J. Ruskin , Martin Crane

The measured correlations of financial time series in subsequent epochs change considerably as a function of time. When studying the whole correlation matrices, quasi-stationary patterns, referred to as market states, are seen by applying…

统计金融 · 定量金融 2020-11-03 Anton J. Heckens , Sebastian M. Krause , Thomas Guhr

We investigate the daily correlation present among market indices of stock exchanges located all over the world in the time period Jan 1996 - Jul 2009. We discover that the correlation among market indices presents both a fast and a slow…

统计金融 · 定量金融 2011-08-16 Dong-Ming Song , Michele Tumminello , Wei-Xing Zhou , Rosario N. Mantegna

It is commonly believed that the correlations between stock returns increase in high volatility periods. We investigate how much of these correlations can be explained within a simple non-Gaussian one-factor description with time…

无序系统与神经网络 · 物理学 2008-12-02 Pierre Cizeau , Marc Potters , Jean-Philippe Bouchaud

Lead-lag relationships among assets represent a useful tool for analyzing high frequency financial data. However, research on these relationships predominantly focuses on correlation analyses for the dynamics of stock prices, spots and…

统计金融 · 定量金融 2020-01-08 Lasko Basnarkov , Viktor Stojkoski , Zoran Utkovski , Ljupco Kocarev

Financial empirical correlation matrices of all the companies which both, the Deutsche Aktienindex (DAX) and the Dow Jones comprised during the time period 1990-1999 are studied using a time window of a limited, either 30 or 60, number of…

统计力学 · 物理学 2008-12-02 S. Drozdz , F. Gruemmer , F. Ruf , J. Speth

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…

交易与市场微观结构 · 定量金融 2015-10-15 Roberto Ortiz , Mauricio Contreras , Marcelo Villena
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