Adaptive Test for Jump

Fuente: arXiv
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Main Authors: Ma, Huifang, Feng, Long
Format: Preprint
Published: 2026
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author Ma, Huifang
Feng, Long
author_facet Ma, Huifang
Feng, Long
contents We develop an adaptive jump test for discretely observed high-frequency semimartingales by combining the A"it-Sahalia--Jacod ratio statistic (A"it-Sahalia and Jacod, 2009) and the Lee--Mykland extreme-return statistic (Lee and Mykland, 2008) with the Cauchy combination rule. Allowing stochastic It^o drift, volatility, and leverage, we show asymptotic independence under the continuous-path null and dense local alternatives, yielding an analytically calibrated test with closed-form power; under finite-activity jumps, the test is consistent. We also extend the method to additive microstructure noise. Simulations show that the combined procedure performs well under both dense and sparse alternatives and is typically best overall.
format Preprint
id arxiv_https___arxiv_org_abs_2605_20828
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Adaptive Test for Jump
Ma, Huifang
Feng, Long
Methodology
We develop an adaptive jump test for discretely observed high-frequency semimartingales by combining the A"it-Sahalia--Jacod ratio statistic (A"it-Sahalia and Jacod, 2009) and the Lee--Mykland extreme-return statistic (Lee and Mykland, 2008) with the Cauchy combination rule. Allowing stochastic It^o drift, volatility, and leverage, we show asymptotic independence under the continuous-path null and dense local alternatives, yielding an analytically calibrated test with closed-form power; under finite-activity jumps, the test is consistent. We also extend the method to additive microstructure noise. Simulations show that the combined procedure performs well under both dense and sparse alternatives and is typically best overall.
title Adaptive Test for Jump
topic Methodology
url https://arxiv.org/abs/2605.20828