• DocumentCode
    235052
  • Title

    Research and Application of a Stochastic Volatility Model with T-distribution Leveraged

  • Author

    Jianhui Yang ; Jie Wu

  • Author_Institution
    Sch. Of Bus. Adm., South China Univ. of Technol., Guangzhou, China
  • fYear
    2014
  • fDate
    15-16 Nov. 2014
  • Firstpage
    775
  • Lastpage
    779
  • Abstract
    This article proposed a stochastic volatility model with T-distribution leveraged (ASV-T model), the model can be used to reflect the leverage effect and the fat-tail effect exist in stock market. Through the statistics analysis of the model, it is proved that the model is workable and is best for the fitting of historical data. With empirical research on Chinese GEM index, it is further proved that the imitative effect of the ASV-T model is the best.
  • Keywords
    statistical analysis; stochastic processes; stock markets; ASV-T model; Chinese GEM index; T-distribution leveraged; fat-tail effect; leverage effect; statistics analysis; stochastic volatility model; stock market; Analytical models; Fluctuations; Indexes; Mathematical model; Predictive models; Stochastic processes; Stock markets; GEM index volatility; fat tail; leverage effect; mcmc; stochastic volatility model;
  • fLanguage
    English
  • Publisher
    ieee
  • Conference_Titel
    Computational Intelligence and Security (CIS), 2014 Tenth International Conference on
  • Conference_Location
    Kunming
  • Print_ISBN
    978-1-4799-7433-7
  • Type

    conf

  • DOI
    10.1109/CIS.2014.21
  • Filename
    7017004