I am using the Lomackinlay command to test for predictability in stock index returns (log returns), however I don't really trust the results. I do this for multiple indices, but one example is this below:
Code:
. lomackinlay Hongarije, robust Lo-MacKinlay modified overlapping Variance Ratio statistic for Hongarije [ 1 - 522 ] q N VR R_s p>|z| -------------------------------------------------- 2 506 0.484 -5.7851 0.0000 4 506 0.232 -5.1783 0.0000 8 506 0.130 -4.2371 0.0000 16 506 0.074 -3.4151 0.0006 Test statistics robust to heteroskedasticity
Thanks for your time and help!
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