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Realised quantile-based estimation of the integrated variance

Kim Christensen, Roel Oomen, Mark Podolskij

arXiv 19 Jan 2026 · Econometrics

arXiv:2601.13006 · PDF · Extracted main text

Abstract

In this paper, we propose a new jump robust quantile-based realised variance measure of ex-post return variation that can be computed using potentially noisy data. The estimator is consistent for the integrated variance and we present feasible central limit theorems which show that it converges at the best attainable rate and has excellent efficiency. Asymptotically, the quantile-based realised variance is immune to finite activity jumps and outliers in the price series, while in modified form the estimator is applicable with market microstructure noise and therefore operational on high-frequency data. Simulations show that it has superior robustness properties in finite sample, while an empirical application illustrates its use on equity data.

Citation extraction

80
references
132
in-text mentions
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distinct cited
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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
1O. E. Barndorff-Nielsen and P. R. Hansen and A. Lunde and N. Shephard (2008) Designing realized kernels to measure the ex post variation of equity prices in the presence of noise0.9285480%
2Y. Aït-Sahalia and J. Jacod (2009) Estimating the degree of activity of jumps in high frequency data0.92843100%
3T. G. Andersen and T. Bollerslev and F. X. Diebold (2007) Roughing it up: Including jump components in the measurement, modeling and forecasting of return volatility0.92843100%
4X. Huang and G. Tauchen (2005) The relative contribution of jumps to total price variance0.92843100%
5M. Podolskij and M. Vetter (2009) Bipower-type estimation in a noisy diffusion setting self0.87452100%
6J. Jacod and Y. Li and P. A. Mykland and M. Podolskij and M. Vetter (2009) Microstructure noise in the continuous case: The pre-averaging approach self0.8434475%
7T. G. Andersen and D. Dobrev and E. Schaumburg (2008) Duration-based volatility estimation0.8434375%
8L. Zhang (2006) Efficient estimation of stochastic volatility using noisy observations: A multi-scale approach0.84333100%
9R. C. A. Oomen (2006) Comment on 2005 JBES invited address “Realized variance and market microstructure noise” by Peter R. Hansen and Asger Lunde self0.7375260%
10O. E. Barndorff-Nielsen and N. Shephard (2004) Power and bipower variation with stochastic volatility and jumps0.73732100%

Showing the top 10 of 80 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Asymptotic theory of range-based multipower variation1.00053
2Bayesian Inference on Volatility in the Presence of Infinite Jump Activity and Microstructure Noise0.64422
3Pre-averaging estimators of the ex-post covariance matrix in noisy diffusion models with non-synchronous data0.51121
4Inference from high-frequency data: A subsampling approach0.40511
5Fact or friction: Jumps at ultra high frequency0.40511
6On covariation estimation for multivariate continuous Itô semimartingales with noise in non-synchronous observation schemes0.40511
7The fine structure of electricity price volatility0.40511