Testing for cojumps in high-frequency financial data: An approach based on first-high-low-last prices

B-Tier
Journal: Journal of Banking & Finance
Year: 2019
Volume: 99
Issue: C
Pages: 252-274

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

This paper proposes a new test for simultaneous intraday jumps (cojumps) in a panel of high frequency financial data. We utilize intraday first-high-low-last values of asset prices to construct estimates for the cross-variation of returns in a large panel of high frequency financial data, which we then use to form a test statistic that can detect cojumps. Simulations show that a bias corrected version of the test performs well when microstructure noise is present. Applied to a panel of high frequency Chinese equity data, our test identifies cojumps that coincide with announcements relating to monetary policy and stock market regulations.

Technical Details

RePEc Handle
repec:eee:jbfina:v:99:y:2019:i:c:p:252-274
Journal Field
Finance
Author Count
2
Added to Database
2026-01-24