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Long Memory in Stock Trading

2003/03/12 by Andrei Leonidov, Leonidov, Andrei · 1 citation
Economics, Econometrics and Finance · Physics and Astronomy · #Chaos control and synchronization #Complex Systems and Time Series Analysis #FOS: Economics and business #FOS: Physical sciences #Financial Risk and Volatility Modeling #Statistical Mechanics (cond-mat.stat-mech) #Trading and Market Microstructure (q-fin.TR)

paper · pdf · doi:10.48550/arxiv.cond-mat/0303222

openalex publication_date 2003/03/12 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

Abstract

Using a relationship between the moments of the probability distribution of times between the two consecutive trades (intertrade time distribution) and the moments of the distribution of a daily number of trades we show, that the underlying point process is essentially non-markovian. A detailed analysis of all trades in the EESR stock on the Moscow International Currency Exchange in the period January 2003 - September 2003, including that of correlation between intertrade time intervals is presented. A power-law decay of the correlation provides an additional evidence of the long-memory nature of the series of times of trades. A data set including all trades in Siemens, Commerzbank and Karstadt stocks traded on the Xetra electronic stock exchange of Deutsche Boerse in October 2002 is also considered.

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