A Nonparametric Distribution-Free Test for Serial Independence in Stock Returns: A Comment

B-Tier
Journal: Journal of Financial and Quantitative Analysis
Year: 1990
Volume: 25
Issue: 3
Pages: 417-418

Authors (2)

Ashley, Richard (Virginia Polytechnic Institute) Patterson, Douglas (not in RePEc)

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

We have confirmed that Corrado and Schatzberg's (1990) criticism of our test for serial independence in stock returns (Ashley and Patterson (1986)) is correct. The corrected results still favor rejection of the null hypothesis that the daily returns for several stocks (notably Holly Sugar (HLY) and E Systems (ESY)) are serially independent, but only at the 12-percent and 14-percent significance levels, respectively. Evidently, this kind of test is long on simplicity and intuitive appeal, but short on power.

Technical Details

RePEc Handle
repec:cup:jfinqa:v:25:y:1990:i:03:p:417-418_00
Journal Field
Finance
Author Count
2
Added to Database
2026-01-24