An Empirical Study of the Mixture of Time and Movements in Prices

This paper investigates the persistent pattern in the Helsinki Exchanges. The persistent pattern is analyzed using a time and a price approach. It is hypothesized that arrival times are related to movements in prices. Thus, the arrival times are defined as durations and formulated as an Autoregressi...

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Main Author: Ben Sita, Bernard (author)
Format: conferenceObject
Published: 2017
Online Access:http://hdl.handle.net/10725/5940
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
https://helda.helsinki.fi/bitstream/handle/10227/175/485-951-555-767-4.pdf?sequence=3
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author Ben Sita, Bernard
author_facet Ben Sita, Bernard
author_role author
dc.creator.none.fl_str_mv Ben Sita, Bernard
dc.date.none.fl_str_mv 2017-07-21T08:50:03Z
2017-07-21T08:50:03Z
2017-07-21
dc.identifier.none.fl_str_mv 9515557674
http://hdl.handle.net/10725/5940
Ben Sita, B. (2002). An Empirical Study of the Mixture of Time and Movements in Prices. Swedish School of Economics and Business Administration
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
https://helda.helsinki.fi/bitstream/handle/10227/175/485-951-555-767-4.pdf?sequence=3
dc.language.none.fl_str_mv en
dc.publisher.none.fl_str_mv Swedish School of Economics and Business Administration
dc.relation.none.fl_str_mv Swedish School of Economics and Business Administration . Working papers; 485
dc.rights.*.fl_str_mv info:eu-repo/semantics/openAccess
dc.title.none.fl_str_mv An Empirical Study of the Mixture of Time and Movements in Prices
dc.type.none.fl_str_mv Conference Paper / Proceeding
info:eu-repo/semantics/publishedVersion
info:eu-repo/semantics/conferenceObject
description This paper investigates the persistent pattern in the Helsinki Exchanges. The persistent pattern is analyzed using a time and a price approach. It is hypothesized that arrival times are related to movements in prices. Thus, the arrival times are defined as durations and formulated as an Autoregressive Conditional Duration (ACD) model as in Engle and Russell (1998). The prices are defined as price changes and formulated as a GARCH process including duration measures. The research question follows from market microstructure predictions about price intensities defined as time between price changes. The microstructure theory states that long transaction durations might be associated with both no news and bad news. Accordingly, short durations would be related to high volatility and long durations to low volatility. As a result, the spread will tend to be larger under intensive moments. The main findings of this study are 1) arrival times are positively autocorrelated and 2) long durations are associated with low volatility in the market.
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Ben Sita, B. (2002). An Empirical Study of the Mixture of Time and Movements in Prices. Swedish School of Economics and Business Administration
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spelling An Empirical Study of the Mixture of Time and Movements in PricesBen Sita, BernardThis paper investigates the persistent pattern in the Helsinki Exchanges. The persistent pattern is analyzed using a time and a price approach. It is hypothesized that arrival times are related to movements in prices. Thus, the arrival times are defined as durations and formulated as an Autoregressive Conditional Duration (ACD) model as in Engle and Russell (1998). The prices are defined as price changes and formulated as a GARCH process including duration measures. The research question follows from market microstructure predictions about price intensities defined as time between price changes. The microstructure theory states that long transaction durations might be associated with both no news and bad news. Accordingly, short durations would be related to high volatility and long durations to low volatility. As a result, the spread will tend to be larger under intensive moments. The main findings of this study are 1) arrival times are positively autocorrelated and 2) long durations are associated with low volatility in the market.N/A23 p. : ill.Includes bibliographical references (p. 22- 223)Swedish School of Economics and Business Administration2017-07-21T08:50:03Z2017-07-21T08:50:03Z2017-07-21Conference Paper / Proceedinginfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/conferenceObject9515557674http://hdl.handle.net/10725/5940Ben Sita, B. (2002). An Empirical Study of the Mixture of Time and Movements in Prices. Swedish School of Economics and Business Administrationhttp://libraries.lau.edu.lb/research/laur/terms-of-use/articles.phphttps://helda.helsinki.fi/bitstream/handle/10227/175/485-951-555-767-4.pdf?sequence=3enSwedish School of Economics and Business Administration . Working papers; 485info:eu-repo/semantics/openAccessoai:laur.lau.edu.lb:10725/59402021-03-19T09:10:08Z
spellingShingle An Empirical Study of the Mixture of Time and Movements in Prices
Ben Sita, Bernard
status_str publishedVersion
title An Empirical Study of the Mixture of Time and Movements in Prices
title_full An Empirical Study of the Mixture of Time and Movements in Prices
title_fullStr An Empirical Study of the Mixture of Time and Movements in Prices
title_full_unstemmed An Empirical Study of the Mixture of Time and Movements in Prices
title_short An Empirical Study of the Mixture of Time and Movements in Prices
title_sort An Empirical Study of the Mixture of Time and Movements in Prices
url http://hdl.handle.net/10725/5940
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
https://helda.helsinki.fi/bitstream/handle/10227/175/485-951-555-767-4.pdf?sequence=3