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Sluggish news reactions: A combinatorial approach for synchronizing stock jumps

Nabil Bouamara, Kris Boudt, Sébastien Laurent, Christopher J. Neely

arXiv 27 Sep 2023 · Econometrics

arXiv:2309.15705 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Stock prices often react sluggishly to news, producing gradual jumps and jump delays. Econometricians typically treat these sluggish reactions as microstructure effects and settle for a coarse sampling grid to guard against them. Synchronizing mistimed stock returns on a fine sampling grid allows us to automatically detect noisy jumps and better approximate the true common jumps in related stock prices.

Citation extraction

30
references
69
in-text mentions
30
distinct cited
4
self-citations
12,528
main-text words

appendix boundary found by appendix_command · 87% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Li, J., V. Todorov, G. Tauchen, and R. Chen (2017) Mixed-scale jump regressions with bootstrap inference1.00073100%
2Barndorff-Nielsen, O. E., P. R. Hansen, A. Lunde, and N. Shephard (2009) Realized kernels in practice: Trades and quotes1.00053100%
3Barndorff-Nielsen, O. E., P. R. Hansen, A. Lunde, and N. Shephard (2011) Multivariate realised kernels: consistent positive semi-definite estimators of the covariation of equity prices with noise and n…1.00053100%
4Bollerslev, T., T. H. Law, and G. Tauchen (2008) Risk, jumps, and diversification0.92843100%
5Boudt, K., S. Laurent, A. Lunde, R. Quaedvlieg, and O. Sauri (2017) Positive semidefinite integrated covariance estimation, factorizations and asynchronicity self0.84333100%
6Epps, T. W (1979) Comovements in stock prices in the very short run0.84333100%
7Li, J., V. Todorov, G. Tauchen, and H. Lin (2019) Rank tests at jump events0.84333100%
8Christensen, K., R. C. Oomen, and M. Podolskij (2014) Fact or friction: Jumps at ultra high frequency0.7373367%
9Embrechts, P., G. Puccetti, and L. Rüschendorf (2013) Model uncertainty and VaR aggregation0.7373367%
10Puccetti, G. and L. Rüschendorf (2012) Computation of sharp bounds on the distribution of a function of dependent risks0.7373367%

Showing the top 10 of 30 scored citations.