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Sluggish news reactions : a combinatorial approach for synchronizing stock jumps

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Abstract
Stock prices often react sluggishly to news, producing gradual jumps and jump delays. Econometricians typically treat these sluggish reactions as microstructure effects and settle for a coarse sampling grid to guard against them. Synchronizing mistimed stock returns on a fine sampling grid allows us to better approximate the true common jumps in related stock prices.
Keywords
Asynchronicity, Cojumps, High-frequency data, Microstructure noise, Realized Covariance, Rearrangement

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Citation

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MLA
Bouamara, Nabil, et al. “Sluggish News Reactions : A Combinatorial Approach for Synchronizing Stock Jumps.” Federal Reserve Bank of St. Louis Working Paper Series, no. 2024–006, Federal Reserve Bank of St. Louis, 2024, doi:10.20955/wp.2024.006.
APA
Bouamara, N., Boudt, K., Laurent, S., & Neely, C. J. (2024). Sluggish news reactions : a combinatorial approach for synchronizing stock jumps. https://doi.org/10.20955/wp.2024.006
Chicago author-date
Bouamara, Nabil, Kris Boudt, Sébastien Laurent, and Christopher J. Neely. 2024. “Sluggish News Reactions : A Combinatorial Approach for Synchronizing Stock Jumps.” Federal Reserve Bank of St. Louis Working Paper Series. Federal Reserve Bank of St. Louis. https://doi.org/10.20955/wp.2024.006.
Chicago author-date (all authors)
Bouamara, Nabil, Kris Boudt, Sébastien Laurent, and Christopher J. Neely. 2024. “Sluggish News Reactions : A Combinatorial Approach for Synchronizing Stock Jumps.” Federal Reserve Bank of St. Louis Working Paper Series. Federal Reserve Bank of St. Louis. doi:10.20955/wp.2024.006.
Vancouver
1.
Bouamara N, Boudt K, Laurent S, Neely CJ. Sluggish news reactions : a combinatorial approach for synchronizing stock jumps. Federal Reserve Bank of St. Louis Working Paper Series. Federal Reserve Bank of St. Louis; 2024.
IEEE
[1]
N. Bouamara, K. Boudt, S. Laurent, and C. J. Neely, “Sluggish news reactions : a combinatorial approach for synchronizing stock jumps,” Federal Reserve Bank of St. Louis Working Paper Series, no. 2024–006. Federal Reserve Bank of St. Louis, 2024.
@misc{01J103CCC58G9FBYF3ZP2VS874,
  abstract     = {{Stock prices often react sluggishly to news, producing gradual jumps and jump delays. Econometricians typically treat these sluggish reactions as microstructure effects and settle for a coarse sampling grid to guard against them. Synchronizing mistimed stock returns on a fine sampling grid allows us to better approximate the true common jumps in related stock prices.}},
  author       = {{Bouamara, Nabil and Boudt, Kris and Laurent, Sébastien and Neely, Christopher J.}},
  keywords     = {{Asynchronicity,Cojumps,High-frequency data,Microstructure noise,Realized Covariance,Rearrangement}},
  language     = {{eng}},
  number       = {{2024-006}},
  pages        = {{29}},
  publisher    = {{Federal Reserve Bank of St. Louis}},
  series       = {{Federal Reserve Bank of St. Louis Working Paper Series}},
  title        = {{Sluggish news reactions : a combinatorial approach for synchronizing stock jumps}},
  url          = {{http://doi.org/10.20955/wp.2024.006}},
  year         = {{2024}},
}

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