Price duration versus trading volume in high-frequency data for selected DAX companies

The properties of the time series of durations between consecutive trades of a particular stock have been studied by many contributors in the literature of financial econometrics. Among them are highly prominent scientists like Engle (2000) and Gourieroux and Jasiak (2001). The importance of this t...

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Main Authors: Christoph Mitterer, Henryk Gurgul, Robert Syrek
Format: Article
Language:English
Published: AGH UNIVERSITY PRESS 2016-12-01
Series:Managerial Economics
Online Access:https://www.exeley.com/exeley/journals/managerial_economics/17/2/pdf/10.7494_manage.2016.17.2.241.pdf
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author Christoph Mitterer
Henryk Gurgul
Robert Syrek
author_facet Christoph Mitterer
Henryk Gurgul
Robert Syrek
author_sort Christoph Mitterer
collection DOAJ
description The properties of the time series of durations between consecutive trades of a particular stock have been studied by many contributors in the literature of financial econometrics. Among them are highly prominent scientists like Engle (2000) and Gourieroux and Jasiak (2001). The importance of this topic, accompanied by the growing availability of (ultra-)high-frequency data, has prompted an increase of contributions in recent years. Intensive research based on high-frequency data has several financial motivations. First of all, it is linked with microstructure theory. Secondly, it contributes to the literature on stochastic time deformation. But the most important need for research on the dynamics of trade durations is the necessity to manage liquidity risk. The reason is that durations between the following trades are a widely accepted measures of market liquidity. In addition, their volatility reflects the liquidity risk.
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publisher AGH UNIVERSITY PRESS
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series Managerial Economics
spelling doaj-art-36ebe523848c4b85918d3c049e87d7df2025-08-20T02:51:23ZengAGH UNIVERSITY PRESSManagerial Economics1898-11432353-36172016-12-0117210.7494/manage.2016.17.2.241Price duration versus trading volume in high-frequency data for selected DAX companiesChristoph Mitterer0Henryk Gurgul1Robert Syrek2Bruell Kallmus Bank AG, Institutional Banking, Graz, Austria,AGH University of Science and Technology in Krakow, Department of Applications of Mathematics in Economics,Jagiellonian University in Krakow, Institute of Economics, Finance and Management,The properties of the time series of durations between consecutive trades of a particular stock have been studied by many contributors in the literature of financial econometrics. Among them are highly prominent scientists like Engle (2000) and Gourieroux and Jasiak (2001). The importance of this topic, accompanied by the growing availability of (ultra-)high-frequency data, has prompted an increase of contributions in recent years. Intensive research based on high-frequency data has several financial motivations. First of all, it is linked with microstructure theory. Secondly, it contributes to the literature on stochastic time deformation. But the most important need for research on the dynamics of trade durations is the necessity to manage liquidity risk. The reason is that durations between the following trades are a widely accepted measures of market liquidity. In addition, their volatility reflects the liquidity risk.https://www.exeley.com/exeley/journals/managerial_economics/17/2/pdf/10.7494_manage.2016.17.2.241.pdf
spellingShingle Christoph Mitterer
Henryk Gurgul
Robert Syrek
Price duration versus trading volume in high-frequency data for selected DAX companies
Managerial Economics
title Price duration versus trading volume in high-frequency data for selected DAX companies
title_full Price duration versus trading volume in high-frequency data for selected DAX companies
title_fullStr Price duration versus trading volume in high-frequency data for selected DAX companies
title_full_unstemmed Price duration versus trading volume in high-frequency data for selected DAX companies
title_short Price duration versus trading volume in high-frequency data for selected DAX companies
title_sort price duration versus trading volume in high frequency data for selected dax companies
url https://www.exeley.com/exeley/journals/managerial_economics/17/2/pdf/10.7494_manage.2016.17.2.241.pdf
work_keys_str_mv AT christophmitterer pricedurationversustradingvolumeinhighfrequencydataforselecteddaxcompanies
AT henrykgurgul pricedurationversustradingvolumeinhighfrequencydataforselecteddaxcompanies
AT robertsyrek pricedurationversustradingvolumeinhighfrequencydataforselecteddaxcompanies