Fractional differencing in discrete time

Date

2013

Authors

Elder, J.
Elliott, R.
Miao, H.

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Journal article

Citation

Quantitative Finance, 2013; 13(2):195-204

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John Elder, Robert J. Elliott and Hong Miao

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Abstract

This paper consists of two parts, a theoretical followed by an empirical contribution. We first give a new framework for fractional differencing in discrete time and show how the definition of fractional differencing that is commonly employed in empirical financial applications arises as a special case. We then use these methods to estimate the fractional differencing parameter in the return and volatility for three Comex metal futures contracts. The metal futures are sampled at very high frequencies—five-minute intervals over a nearly eight year period.

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Dissertation Note

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Link to a related website: https://mountainscholar.org/bitstream/10217/206895/1/Miao_H_QuaFin_2013.pdf, Open Access via Unpaywall

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© 2013 Taylor & Francis

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