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Statistical properties of volatility in fractal dimensions and probability distribution among six stock markets

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Author Info
Hai-Chin Yu
Ming-Chang Huang

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Abstract

This study examines the statistical properties of volatility among New York, Tokyo, Taiwan, South Korea, Singapore and Hong Kong stock markets. Fractal dimensions, probability distribution and two-point volatility correlation are used to measure and compare volatility among the six over the 12-year period from 1 January 1990 to 31 December 2001. New York market is found to be the strongest among all in terms of market efficiency. Moreover, the Tokyo and Singapore markets are found to be very similar in fractal dimension and probability distribution, but different in their resistance to volatility: Tokyo has a higher ability to dissipate volatility. This phenomenon implies that the Tokyo market is more efficient than the Singapore market. Hong Kong market is similar to the Singapore market in its ability to dissipate volatility. Meanwhile, Taiwanese and Korean markets are the most two volatile markets among the six, but Taiwanese market is weaker than the Korean market in dissipating volatility.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Financial Economics.

Volume (Year): 14 (2004)
Issue (Month): 15 (October)
Pages: 1087-1095
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Handle: RePEc:taf:apfiec:v:14:y:2004:i:15:p:1087-1095

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  1. Kristin Forbes & Roberto Rigobon, 1999. "No Contagion, Only Interdependence: Measuring Stock Market Co-movements," NBER Working Papers 7267, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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