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Noisy chaos in intraday financial data: Evidence from the American index
Journal article   Peer reviewed

Noisy chaos in intraday financial data: Evidence from the American index

Ahmed BenSaïda
Applied mathematics and computation, Vol.226, pp.258-265
01/01/2014

Abstract

Financial markets Intraday returns Lyapunov exponent Noisy chaos test
The presence of chaos in financial markets was inconclusive due mainly to test misspecification and data type. Although noisy chaos was investigated in recent studies, it was only explored in daily returns, which does not necessary mean that continuous intra-daily data will exhibit the same dynamics. High level noisy chaos is tested in the Standard & Poor’s 500 index returns over 4 different frequencies: weekly, daily, 30-min and 5-min basis; the dynamics in all frequencies are non-chaotic.

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