Analysis of passivity problems in the baltic equity market
Articles
Igoris Belovas
Vilnius Gediminas Technical University
Audrius Kabašinskas
Institute of Mathematics and Informatics
Leonidas Sakalauskas
Institute of Mathematics and Informatics
Published 2023-09-21
https://doi.org/10.15388/LMR.2006.30729
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Keywords

zero returns of stock
stable laws
mixed distribution
goodness-of-fit
characterictic function method
market passivity

How to Cite

Belovas, I., Kabašinskas, A. and Sakalauskas, L. (2023) “Analysis of passivity problems in the baltic equity market”, Lietuvos matematikos rinkinys, 46(spec.), pp. 289–294. doi:10.15388/LMR.2006.30729.

Abstract

The Baltic States equity market is a challenge for investors and financial analysts. Unfortunately strong  assivity is observed in ``young'' markets, therefore any (Gaussian, α-stable etc) distribution fitting tests (Anderson–Darling, Kolmogorov–Smirnov, etc.) are poorly applicable. Improvement based on mixed distributions is proposed and its adequacy in the Baltic States market is tested. In this paper we use Koutrouvelis goodness-of-fit test and modified χ2 test.

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