Publication Type

Conference Paper

Version

submittedVersion

Publication Date

7-2005

Abstract

We investigate the distribution of high-frequency price changes, conditional on trading volume and duration between trades, on four stocks traded on the New York Stock Exchange. The conditional probabilities are estimated nonparametrically using local polynomial regression methods. We find substantial skewness in the distribution of price changes, with the direction of skewness dependent on the sign of trade. We also find that the probability of larger price changes increases with volume, but only for trades that occur with longer durations. The distribution of price changes vary with duration primarily when volume is high.

Discipline

Econometrics

Research Areas

Econometrics

Publication

Winter Meeting of the Econometric Society

Additional URL

http://econpapers.repec.org/article/sprempeco/v_3a30_3ay_3a2006_3ai_3a4_3ap_3a827-842.htm

Included in

Econometrics Commons

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