A Note on Forecasting Daily Peruvian Stock Market Volatility Risk Using Intraday Returns

In this paper I present a model to forecast the daily Value at Risk (VaR) of the Peruvian stock market (measured through the general index of the Lima Stock Exchange: the IGBVL) based on intraday (high-frequency) data. Daily volatility is estimated using realised volatility and I adopted a regressio...

Descripción completa

Detalles Bibliográficos
Autor: Zevallos, Mauricio
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2019
País:Perú
Institución:Pontificia Universidad Católica del Perú
Repositorio:Revistas - Pontificia Universidad Católica del Perú
Idioma:inglés
OAI Identifier:oai:ojs.pkp.sfu.ca:article/21503
Acceso en línea:http://revistas.pucp.edu.pe/index.php/economia/article/view/21503
Access Level:acceso abierto
Palabra clave:High frequency data
Quantile Regression
Value-at-Risk
Descripción
Sumario:In this paper I present a model to forecast the daily Value at Risk (VaR) of the Peruvian stock market (measured through the general index of the Lima Stock Exchange: the IGBVL) based on intraday (high-frequency) data. Daily volatility is estimated using realised volatility and I adopted a regression quantile approach to calculate one-step predicted VaR values. The results suggest that the realised volatility is a useful measure to explain the Peruvian stock market volatility and I obtained sound results using quantile regression for risk estimation.