Query:
faculty: "FEB" and publication year: "2010"
| Author | R.C.A. Oomen | | Title | High-dimensional covariance forecasting for short intra-day horizons |
| Journal | Quantitative Finance |
| Volume | 10 |
| Year | 2010 |
| Issue | 10 |
| Pages | 1173-1185 |
| ISSN | 14697688 |
| Faculty | Faculty of Economics and Business |
| Institute/dept. | FEB: Research Institute in Economics and Econometrics Amsterdam (RESAM) |
| Abstract | Asset return covariances at intra-day horizons are known to tend towards zero due to market microstructure effects. Thus, traders who simply scale their daily covariance forecast to match their trading horizon are likely to over-estimate the actual experienced asset dependence. In this paper, some of the key challenges are discussed that are encountered when forecasting high-dimensional covariance matrices for short intra-day horizons. Based on a novel evaluation methodology, and extensive empirical analysis, specific recommendations are made regarding model design and data sampling. |
| Document type | Article |
| Document finder |
|
Use this url to link to this page: http://dare.uva.nl/en/record/410866
Contact us about this recordNotify a colleague
Add to bookbag
|