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Dynamical Volatilities for Yen-Dollar Exchange Rates

2004/09/04 by Kyungsik Kim, Kim, Kyungsik, Seong‐Min Yoon +5
Economics, Econometrics and Finance · Physics and Astronomy · Computer Science · #Complex Systems and Time Series Analysis #Theoretical and Computational Physics #Nonlinear Dynamics and Pattern Formation

paper · pdf · doi:10.48550/arxiv.cond-mat/0409097

Abstract

We study the continuous time random walk theory from financial tick data of the yen-dollar exchange rate transacted at the Japanese financial market. The dynamical behavior of returns and volatilities in this case is particularly treated at the long-time limit. We find that the volatility for prices shows a power-law with anomalous scaling exponent k = 0.96 (one minute) and 0.86 (ten minutes), and that our behavior occurs in the subdiffusive process. Our result presented will be compared with that of recent numerical calculations.

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