Increasing market efficiency: Evolution of cross-correlations of stock returns

dc.creatorToth, Bence
dc.creatorKertesz, Janos
dc.date2005-06-08
dc.date2005-06-17
dc.date.accessioned2026-07-07T12:27:48Z
dc.date.available2026-07-07T12:27:48Z
dc.descriptionWe analyse the temporal changes in the cross correlations of returns on the New York Stock Exchange. We show that lead-lag relationships between daily returns of stocks vanished in less than twenty years. We have found that even for high frequency data the asymmetry of time dependent cross-correlation functions has a decreasing tendency, the position of their peaks are shifted towards the origin while these peaks become sharper and higher, resulting in a diminution of the Epps effect. All these findings indicate that the market becomes increasingly efficient.
dc.description12 pages, 8 figures, accepted to Physica A
dc.identifierhttps://arxiv.org/abs/physics/0506071
dc.identifierhttp://arxiv.org/abs/physics/0506071
dc.identifierPhysica A 360, 505-515 (2006)
dc.identifierdoi:10.1016/j.physa.2005.06.058
dc.identifier.urihttp://salesiana.dossiersoluciones.com/handle/123456789/215332
dc.subjectPhysics and Society
dc.subjectStatistical Finance
dc.titleIncreasing market efficiency: Evolution of cross-correlations of stock returns
dc.typetext

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