Please, help me to estimate the residual variance from the model estimated over one-year period. The model is "reg ret_rf mktrf" and firm ID is "gvkey", year-month is "fdate". Below I attach a sample of data.
Code:
* Example generated by -dataex-. To install: ssc install dataex clear input str6 gvkey float fdate double mktrf float ret_rf "001004" 663 .0059 -.012540748 "001004" 664 .013600000000000001 -.02314811 "001004" 665 -.015300000000000001 .0788761 "001004" 666 .0154 -.15202385 "001004" 667 -.0604 -.0972171 "001004" 668 -.0308 -.22030418 "001004" 669 .0775 .2000528 "001004" 670 .005600000000000001 .08241511 "001004" 671 -.0217 .0703398 "001004" 672 -.057699999999999994 -.19808404 "001004" 673 -.0007000000000000001 .01312702 "001004" 674 .0696 .09280138 "001004" 675 .0092 .036212865 "001004" 676 .0178 .01529097 "001004" 677 -.0005 -.04403448 "001004" 678 .0395 .03814618 "001004" 679 .005 .01842586 "001004" 680 .0025 .27245334 "001004" 681 -.0202 .029333796 "001004" 682 .048600000000000004 .14662059 "001004" 683 .0182 -.10439325 "001004" 684 .0194 -.03020331 "001004" 685 .035699999999999996 .07556119 "001004" 686 .0017000000000000001 -.02325169 "001004" 687 .0109 .071905605 "001004" 688 .0106 -.029774856 "001004" 689 .0078000000000000005 -.005751697 "001004" 690 .0187 .07740712 "001004" 691 .0016 -.03672888 "001004" 692 .025099999999999997 .04679821 "001004" 693 .0225 .03046582 "001004" 694 .031200000000000002 .068369515 "001004" 695 .0106 -.05597458 "001004" 696 .0558 .030841976 "001004" 697 -.0365 .0510374 "001004" 698 -.0235 .03473233 "001004" 699 .0029 -.01806292 "001004" 700 .0265 .0307016 "001004" 701 .0048 .03887754 "001009" 432 .0226 -.6978484 "001009" 433 .013300000000000001 -.58284736 "001013" 432 .0226 .05391918 "001013" 433 .013300000000000001 .025226213 "001013" 434 .0073 -.13597548 "001013" 435 .0206 .2127913 "001013" 436 .0236 .0910381 "001013" 437 -.011399999999999999 -.02573913 "001013" 438 -.059699999999999996 -.06561111 "001013" 439 .0277 .3390953 "001013" 440 .0501 .1233533 "001013" 441 .0086 .06415938 "001013" 442 .0625 .05622907 "001013" 443 -.017 -.14597932 "001013" 444 .049800000000000004 .14811043 "001013" 445 -.0049 -.25128675 "001013" 446 -.050199999999999995 -.00892963 "001013" 447 .0404 -.032206975 "001013" 448 .0674 .3061048 "001013" 449 .040999999999999995 -.029247444 "001013" 450 .0733 .20543782 "001013" 451 -.0415 -.08459536 "001013" 452 .0535 -.12897913 "001013" 453 -.038 .01503077 "001013" 454 .0298 .11874151 "001013" 455 .0132 .11788908 "001013" 456 .0015 -.54771316 "001013" 457 .0704 .3501984 "001013" 458 .047599999999999996 .06389661 "001013" 459 .0073 .0818678 "001013" 460 -.030699999999999998 -.06454279 "001013" 461 .0318 .2947889 "001013" 462 -.0246 -.0869769 "001013" 463 -.16079999999999997 -.3419866 "001013" 464 .061500000000000006 -.05248732 "001013" 465 .0713 .0855574 "001013" 466 .061 .29581302 "001013" 467 .0616 .1593799 "001013" 468 .035 .14218345 "001013" 469 -.0408 .013768446 "001013" 470 .0345 .17316914 "001013" 471 .0433 -.0010787679 "001013" 472 -.0246 .018822223 "001013" 473 .04769999999999999 -.07177494 "001013" 474 -.0347 -.027119614 "001013" 475 -.0138 -.17103484 "001013" 476 -.0281 .12763457 "001013" 477 .0613 .13320878 "001013" 478 .0337 .11435544 "001013" 479 .07719999999999999 .35667855 "001013" 480 -.047400000000000005 -.0954006 "001013" 481 .0245 .35683745 "001013" 482 .052000000000000005 .1958571 "001013" 483 -.064 .1230102 "001013" 484 -.044199999999999996 .10096707 "001013" 485 .0464 .2443721 "001013" 486 -.025099999999999997 -.0048 "001013" 487 .0703 -.02884501 "001013" 488 -.0545 -.3482298 "001013" 489 -.0276 -.2107133 "001013" 490 -.1072 -.06065556 end format %tm fdate
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