Optimal nonparametric range-based volatility estimation

A-Tier
Journal: Journal of Econometrics
Year: 2024
Volume: 238
Issue: 1

Authors (3)

Bollerslev, Tim (National Bureau of Economic Re...) Li, Jia (not in RePEc) Li, Qiyuan (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We present a general framework for optimal nonparametric spot volatility estimation based on intraday range data, comprised of the first, highest, lowest, and last price over a given time-interval. We rely on a decision-theoretic approach together with a coupling-type argument to directly tailor the form of the nonparametric estimator to the specific volatility measure of interest and relevant loss function. The resulting new optimal estimators offer substantial efficiency gains compared to existing commonly used range-based procedures.

Technical Details

RePEc Handle
repec:eee:econom:v:238:y:2024:i:1:s0304407623002646
Journal Field
Econometrics
Author Count
3
Added to Database
2026-01-24