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Main Authors: Liu, Beier, Zhu, Haiyun
Format: Preprint
Published: 2024
Subjects:
Online Access:https://arxiv.org/abs/2404.16449
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author Liu, Beier
Zhu, Haiyun
author_facet Liu, Beier
Zhu, Haiyun
contents In this study, we utilize the Kalman-Filter analysis to assess market efficiency in major stock markets. The Kalman-Filter operates in two stages, assuming that the data contains a consistent trendline representing the true market value prior to being affected by noise. Unlike traditional methods, it can forecast stock price movements effectively. Our findings reveal significant portfolio returns in emerging markets such as Korea, Vietnam, and Malaysia, as well as positive returns in developed markets like the UK, Europe, Japan, and Hong Kong. This suggests that the Kalman-Filter-based price reversal indicator yields promising results across various market types.
format Preprint
id arxiv_https___arxiv_org_abs_2404_16449
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Analysis of market efficiency in main stock markets: using Karman-Filter as an approach
Liu, Beier
Zhu, Haiyun
Computational Finance
Statistical Finance
In this study, we utilize the Kalman-Filter analysis to assess market efficiency in major stock markets. The Kalman-Filter operates in two stages, assuming that the data contains a consistent trendline representing the true market value prior to being affected by noise. Unlike traditional methods, it can forecast stock price movements effectively. Our findings reveal significant portfolio returns in emerging markets such as Korea, Vietnam, and Malaysia, as well as positive returns in developed markets like the UK, Europe, Japan, and Hong Kong. This suggests that the Kalman-Filter-based price reversal indicator yields promising results across various market types.
title Analysis of market efficiency in main stock markets: using Karman-Filter as an approach
topic Computational Finance
Statistical Finance
url https://arxiv.org/abs/2404.16449