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Extreme Return-Volume Dependence in East-Asian Stock Markets: A Copula Approach

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Author Info
Cathy Ning (Department of Economics, Ryerson University)
Tony S. Wirjanto (Department of Economics, University of Waterloo)

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Abstract

A copula approach is adopted to examine the extreme return-volume relationship in six emerging East-Asian equity markets. The empirical results indicate that the return-volume dependence is significant and asymmetric at extremes for all six East-Asian markets. In particular extremely high returns (large gains) tend to be associated with extremely large trading volumes, but only marginal (extremely small) returns tend to be related to either large or small volumes.

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Publisher Info
Paper provided by University of Waterloo, Department of Economics in its series Working Papers with number 08009.

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Date of creation: Dec 2008
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Handle: RePEc:wat:wpaper:08009

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Related research
Keywords: Return-volume dependence; Extreme returns; Copulas; Tail dependence;

Find related papers by JEL classification:
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods
C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
G12 - Financial Economics - - General Financial Markets - - - Asset Pricing

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This page was last updated on 2009-12-15.


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