I want to estimate Intra-day Volatility for this data. I believe that the Autoregressive Conditional Duration (ACD) model of Engle and Russell (1998)* would be appropriate for this irregularly spaced data.
I am using Stata 14.2. The data looks in Stata as follows:
Code:
* Example generated by -dataex-. To install: ssc install dataex clear input double Price byte Volume double TradeTime int EventTime double(Offer Bid) 20.1 33 -1893421728000 72 20.1 19.9 20.2 7 -1893421529000 275 20.2 19.9 20.2 21 -1893421421000.0002 382 20.2 19.9 20.2 24 -1893421421000.0002 383 20.2 19.9 20.2 18 -1893421421000.0002 383 20.2 19.9 20 28 -1893420991000 813 20.2 20 20.2 33 -1893420846999.9998 957 20.2 20 20.3 4 -1893420846999.9998 957 20.2 20 20 22 -1893420506000 1297 20.3 20 20 11 -1893420506000 1297 20.3 20 20.2 29 -1893420023000 1781 20.2 20 20.3 3 -1893420023000 1781 20.2 20 20 4 -1893419951000 1852 20.3 20 20.1 35 -1893419288000 2516 20.3 20.1 20 34 -1893419288000 2516 20.3 20.1 20.2 4 -1893418856999.9998 2946 20.2 20 20.2 16 -1893418624000 3179 20.2 20 20 49 -1893418499000 3305 20.2 20 20 5 -1893418301000 3503 20.1 20 20 24 -1893418301000 3503 20.1 20 20 26 -1893417458000 4346 20.1 20 20 25 -1893417458000 4346 20.1 20 20 22 -1893417458000 4346 20.1 20 20.1 34 -1893417206000 4597 20.1 20 20.2 7 -1893417206000 4598 20.1 20 20.2 7 -1893417206000 4598 20.1 20 20 12 -1893416919000 4884 20.2 20 19.9 13 -1893416919000 4884 20.2 20 19.9 11 -1893416507000 5297 20.2 19.9 19.9 4 -1893416507000 5297 20.2 19.9 20 20 -1893416220000.0002 5584 20.2 20 20 48 -1893415612000 6191 20.2 20 20 12 -1893414712000 7093 20.2 20 19.9 13 -1893414712000 7093 20.2 20 20 33 -1893413922000.0002 7882 20 19.9 20.1 16 -1893413402000 8403 20.1 20 20.2 12 -1893413402000 8403 20.1 20 20.1 22 -1893412686000 9118 20.1 20 20.1 16 -1893412614000 9190 20.1 20 20.2 7 -1893412614000 9190 20.1 20 20.3 17 -1893412614000 9190 20.1 20 20.3 14 -1893412614000 9190 20.1 20 20.3 18 -1893412614000 9191 20.1 20 20.3 6 -1893412488000 9316 20.3 20 20.3 44 -1893412488000 9316 20.3 20 20.3 15 -1893412488000 9316 20.3 20 20.1 21 -1893411932000.0002 9872 20.2 20.1 20.1 24 -1893411860000 9944 20.2 20.1 20.1 17 -1893410927000 10877 20.2 20.1 20 7 -1893410927000 10877 20.2 20.1 20 25 -1893410837000 10967 20.2 20 20.2 19 -1893410443000 11362 20.2 20 20.2 33 -1893410245000 11559 20.2 20 end format %tcHH:MM:SS TradeTime
My question is whether intra-day volatility can be estimated in Stata using an ACD Model. If possible, how it should be done? Specifically, I want to calculate volatility for each 15-minute or 30-minute interval.
* Autoregressive Conditional Duration: A New Model for Irregularly Spaced Transaction Data, by Robert F. Engle and Jeffrey R. Russell; Econometrica, Vol. 66, No. 5 (Sep., 1998), pp. 1127-1162
0 Response to ACD (Autoregressive Conditional Duration) Model for calculating Intra-day Volatility from Trade Data
Post a Comment