A proposal to evaluate stock performance forecasts when empirical distributions are not normally stationary

This paper deals with the main problems related to predictability of asset returns when data series are not normally stationary distributed. The statistical analysis includes several normality tests on returns series of Banamex-30 stocks first, and then an application of mixture of probability distr...

Descripción completa

Detalles Bibliográficos
Autores: Ramírez, José Carlos, Sandoval Saavedra, Rogelio
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2003
País:México
Institución:EL COLEGIO DE MÉXICO
Repositorio:Estudios Económicos de El Colegio de México
Idioma:español
OAI Identifier:oai:oai.estudioseconomicos.colmex.mx:article/182
Acceso en línea:https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/182
Access Level:acceso abierto
Palabra clave:exchange-rate
mexican peso
american dollar
purchasing power
C52
G11
índice Banamex-30
modelo de Markov
Descripción
Sumario:This paper deals with the main problems related to predictability of asset returns when data series are not normally stationary distributed. The statistical analysis includes several normality tests on returns series of Banamex-30 stocks first, and then an application of mixture of probability distributions and stochastic processes to series, which are not normal stationary. As a means to avoid the normality assumption when forecasting asset returns, we introduce a second-order Markov model.