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Realized Kernels in Practice: Trades and Quotes.

Abstract:

Realized kernels use high-frequency data to estimate daily volatility of individual stock prices. They can be applied to either trade or quote data. Here we provide the details of how we suggest implementing them in practice. We compare the estimates based on trade and quote data for the same stock and find a remarkable level of agreement. We identify some features of the high-frequency data, which are challenging for realized kernels. They are when there are local trends in the data, over pe...

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Publisher copy:
10.1111/j.1368-423X.2008.00275.x
Publisher:
Blackwell Publishing
Journal:
Econometrics Journal More from this journal
Volume:
12
Issue:
3
Pages:
1 - 32
Publication date:
2009-01-01
DOI:
ISSN:
1368-4221
Language:
English
UUID:
uuid:84a20231-70be-42e8-a5df-699c7742f875
Local pid:
oai:economics.ouls.ox.ac.uk:14636
Deposit date:
2011-08-16

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