for a paper at university I need a three year rolling standard deviation of returns. In the end I need firm year observations, so every firm should have one standard deviation per year.
The paper i use as a reference states the follwoing: "Our primary measure of corporate risk-taking is Volatility -volatility of monthly stock returns constructed over a window of three years" [...] " Our final sample consists of roughly 30.000 firm-year obserations"
With yearly returns I used the following code
Code:
rolling vola = r(sd), window(3) saving(3-Year Return Volatility): summarize annual_log_return
Code:
rolling vola = r(sd), window(759) saving(3-Year Return Volatility): summarize annual_log_return
See an example of my data below
Code:
* Example generated by -dataex-. To install: ssc install dataex clear input int(date company_code) float r_s_ int year 15582 1 .002399484 2002 15446 1 .0232559 2002 15488 1 -.009186814 2002 15349 1 -.003483082 2002 15564 1 -.004130152 2002 15629 1 -.015606005 2002 15369 1 -.017244903 2002 15546 1 .001918968 2002 15540 1 -.06892748 2002 15449 1 .009737544 2002 15348 1 -.005637663 2002 15565 1 -.013059427 2002 15558 1 .03874377 2002 15621 1 .02572878 2002 15370 1 .01116412 2002 15533 1 -.004375924 2002 15631 1 .0018404057 2002 15411 1 .006621597 2002 15662 1 -.01556447 2002 15392 1 -.009436125 2002 15587 1 .005150879 2002 15400 1 .020069323 2002 15594 1 -.010358914 2002 15431 1 .0021702978 2002 15455 1 .011486853 2002 15468 1 .015092998 2002 15433 1 -.018251505 2002 15652 1 -.002409909 2002 15537 1 -.02547316 2002 15593 1 .009069891 2002 15614 1 .05579595 2002 15384 1 .014257977 2002 15376 1 -.007514463 2002 15693 1 -.0046421625 2002 15368 1 -.006221036 2002 15398 1 -.002517924 2002 15459 1 -.014249854 2002 15393 1 .025527457 2002 15480 1 -.014173967 2002 15544 1 .02500148 2002 15379 1 .015405613 2002 15553 1 -.02984902 2002 15526 1 .02945707 2002 15497 1 -.017487248 2002 15679 1 -.016542573 2002 15669 1 -.008354846 2002 15648 1 .0019549874 2002 15453 1 -.005857047 2002 15586 1 -.04016614 2002 15439 1 .010381272 2002 15424 1 -.005940103 2002 15622 1 -.01282654 2002 15490 1 .0007979155 2002 15571 1 .02125892 2002 15651 1 -.014594428 2002 15357 1 .010093715 2002 15552 1 .0027046995 2002 15664 1 .010177162 2002 15454 1 .0097719 2002 15383 1 .001401126 2002 15489 1 -.014136853 2002 15670 1 -.025590213 2002 15692 1 -.005281798 2002 15438 1 .01384445 2002 15377 1 .009253282 2002 15684 1 .008428827 2002 15421 1 -.01628147 2002 15483 1 .007422936 2002 15701 1 -.01545622 2002 15502 1 -.004135068 2002 15656 1 .01140944 2002 15511 1 -.007386164 2002 15386 1 -.011878805 2002 15658 1 .010208822 2002 15435 1 .066193506 2002 15375 1 -.03385313 2002 15432 1 -.002347395 2002 15607 1 -.03781525 2002 15515 1 .0009676528 2002 15403 1 .02210995 2002 15445 1 -.00549482 2002 15575 1 -.007491405 2002 15505 1 .0019871185 2002 15538 1 .013368674 2002 15524 1 .002618329 2002 15343 1 -.0033331455 2002 15608 1 .0015075208 2002 15685 1 -.003127726 2002 15413 1 .009076586 2002 15475 1 -.003779376 2002 15418 1 -.0041044606 2002 15666 1 -.009589176 2002 15501 1 .012456857 2002 15613 1 -.023192476 2002 15477 1 .005089684 2002 15397 1 -.009599154 2002 15466 1 -.02213284 2002 15595 1 -.012754117 2002 15680 1 .0015870344 2002 15414 1 .006694098 2002 end format %tdnn/dd/CCYY date
0 Response to 3-Year Rolling Standard Deviations of Returns
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