A factor approach to realized volatility forecasting in the presence of finite jumps and cross-sectional correlation in pricing errors

C-Tier
Journal: Economics Letters
Year: 2013
Volume: 120
Issue: 2
Pages: 224-228

Authors (2)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

There is a growing literature on the realized volatility (RV) forecasting of asset returns using high-frequency data. We explore the possibility of forecasting RV with factor analysis; once considering the significant jumps. A real high-frequency financial data application suggests that the factor based approach is of significant potential interest and novelty.

Technical Details

RePEc Handle
repec:eee:ecolet:v:120:y:2013:i:2:p:224-228
Journal Field
General
Author Count
2
Added to Database
2026-01-25