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The impacts of asymmetry on modeling and forecasting realized volatility in Japanese stock markets

Bibliographic record. Follow the original-source link for the publication.

Field Value
Primary domain Volatility
Other domains
Methods Research Methods
Facets
Authors Daiki Maki, Yasushi Ota
Published 2020-05-30
Source arXiv Quantitative Finance History
Identifiers arxiv:2006.00158
URL Open original source

Editorial synthesis

Why it matters

The study reports benefits from leverage effects and realized semivariance in Japanese-equity volatility models, making it relevant to asymmetric HAR comparisons; the abstract does not support trading implications or cross-market generalization. (abstract:S8, abstract:S9)

Main author claims

  • The authors report: Leverage effects clearly influence the modeling of realized volatility in both spot and futures Nikkei 225 markets. (abstract:S3, abstract:S4)
  • The authors report: Realized semivariance aids better modeling, but its impact depends on whether the model includes leverage effects. (abstract:S5)
  • The authors report: Asymmetric jump components do not have a clear influence on realized volatility models, neither in-sample nor out-of-sample. (abstract:S6, abstract:S7)

Data, method, or discussion scope

The study employs heterogeneous autoregressive (HAR) models incorporating three types of asymmetry—positive/negative realized semivariance, asymmetric jumps, and leverage effects—to model and forecast realized volatility for Nikkei 225 spot and futures markets. (abstract:S1, abstract:S2, abstract:S4)

Main limitations

The analysis is limited to Japanese markets and does not test other markets or asset classes. The abstract does not specify the sample period or discuss potential overfitting. (abstract:S1)

Relationships

  • None recorded.