Estimating time-varying variances and covariances via nearest neighbour multivariate predictions: applications to the NYSE and the Madrid Stock Exchange Index

C-Tier
Journal: Applied Economics
Year: 2009
Volume: 41
Issue: 26
Pages: 3437-3445

Authors (3)

Eduardo Acosta-Gonzalez (not in RePEc) Julian Andrada-Felix (Universidad de las Palmas de G...) Fernando Fernandez-Rodriguez (not in RePEc)

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

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

Abstract

In this article, we present a technique to obtain the time-varying covariance matrix for several time series for nearest neighbour predictors. To illustrate the use of this technique, we analyse the time-varying variances and correlations between the daily returns on two equity stock market indexes, the New York Stock Exchange and the Madrid Stock Exchange Index.

Technical Details

RePEc Handle
repec:taf:applec:v:41:y:2009:i:26:p:3437-3445
Journal Field
General
Author Count
3
Added to Database
2026-01-24