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Dynamics of Bid-ask Spread Return and Volatility of the Chinese Stock Market

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

Field Value
Primary domain Unclassified
Other domains
Methods
Facets
Authors Tian Qiu, Guang Chen, Li-Xin Zhong, Xiao-Run Wu
Published 2011-10-20
Source arXiv Quantitative Finance History
Identifiers arxiv:1110.4455
URL Open original source

Editorial synthesis

Why it matters

The study distinguishes memory and multifractal properties of bid-ask spread returns from those of spread volatility, helping avoid treating the two liquidity dynamics as the same process. (abstract:S1, abstract:S2, abstract:S3, abstract:S4, abstract:S5)

Main author claims

  • The authors report: Using four liquid Chinese stocks, the authors report from autocorrelation and DFA analyses that spread returns lack long-range memory while spread volatility is long-range correlated. (abstract:S2, abstract:S3)
  • The authors report from MF-DFA that spread returns display strong multifractality whereas spread volatility shows weaker multifractal behavior. (abstract:S4, abstract:S5)

Data, method, or discussion scope

The evidence is limited to four liquid Chinese stocks and descriptive autocorrelation, DFA, and MF-DFA analyses of memory and multifractality. (abstract:S2, abstract:S3, abstract:S4, abstract:S5)

Main limitations

The four-stock sample limits cross-sectional generalization, and the abstract gives no sample period, significance tests, or forecast evaluation, so the findings cannot be treated directly as a tradable signal. (abstract:S2, abstract:S3, abstract:S4, abstract:S5)

Relationships

  • None recorded.