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Components of multifractality in high-frequency stock returns

2004/11/04 by J. Kwapien, P. Oswiecimka, S. Drozdz · 1 citation
Physics and Astronomy · Economics, Econometrics and Finance · #cond-mat.other #q-fin.ST

paper · pdf · doi:10.1016/j.physa.2004.11.019

published as Physica A 350 (2005) 466-474 · to appear in Physica A

arxiv created 2004/11/04 · arxiv updated 2009/12/01

Abstract

We analyzed multifractal properties of 5-minute stock returns from a period of over two years for 100 highly capitalized American companies. The two sources: fat-tailed probability distributions and nonlinear temporal correlations, vitally contribute to the observed multifractal dynamics of the returns. For majority of the companies the temporal correlations constitute a much more significant related factor, however.

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