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Functional dynamic factor model for intraday price curves

Date

2015-02-21

Authors

Kokoszka, Piotr, author
Miao, Hong, author
Zhang, Xi, author
Journal of Financial Econometrics, publisher

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Abstract

This article proposes a functional dynamic factor model for the evaluation of the impact of scalar– and curve–valued factors on the shapes of intraday price curves. The asymptotic theory leads to practically useful confidence intervals for the factor coefficients. The main findings pertain to the impact of the shapes of intraday oil futures on the shapes of intraday prices of blue chip stocks.

Description

Includes bibliographical references (pages 21-23).
Published as: Journal of Financial Econometrics, vol. 13, no. 2, pp. 456-477, 2015, https://doi.org/10.1093/jjfinec/nbu004.

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Subject

functional factor model
intraday price curves
oil futures

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