Comparison between the probability distribution of returns in the Heston model and empirical data for stock indexes

dc.creatorSilva, A. Christian
dc.creatorYakovenko, Victor M.
dc.date2002-11-04
dc.date2002-11-05
dc.date.accessioned2026-07-07T02:48:03Z
dc.date.available2026-07-07T02:48:03Z
dc.descriptionWe compare the probability distribution of returns for the three major stock-market indexes (Nasdaq, S&P500, and Dow-Jones) with an analytical formula recently derived by Dragulescu and Yakovenko for the Heston model with stochastic variance. For the period of 1982-1999, we find a very good agreement between the theory and the data for a wide range of time lags from 1 to 250 days. On the other hand, deviations start to appear when the data for 2000-2002 are included. We interpret this as a statistical evidence of the major change in the market from a positive growth rate in 1980s and 1990s to a negative rate in 2000s.
dc.descriptionElsevier style (enclosed), 7.5 pages, 7 figures with 14 eps files. Submitted to Physica A, Proceedings of International Econophysics Conference in Bali, 28-31 August 2002
dc.identifierhttps://arxiv.org/abs/cond-mat/0211050
dc.identifierhttp://arxiv.org/abs/cond-mat/0211050
dc.identifierPhysica A 324, 303-310 (2003)
dc.identifierdoi:10.1016/S0378-4371(02)01903-9
dc.identifier.urihttp://salesiana.dossiersoluciones.com/handle/123456789/20250
dc.subjectStrongly Correlated Electrons
dc.titleComparison between the probability distribution of returns in the Heston model and empirical data for stock indexes
dc.typetext

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