Testing international arbitrage: evidence from Chinese and Australian markets

This paper studies two contrarian strategy; one based on the Law of One Price and another based on the Markov switching strategy. The stock pairs are identified using a new derivation of the partial adjustment model. The Markov strategy is more profitable than the LOP strategy. This paper also te...

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Bibliographic Details
Main Author: Abraham, Santosh Mon
Format: Thesis
Language:English
Published: Curtin University 2014
Online Access:http://hdl.handle.net/20.500.11937/1640
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author Abraham, Santosh Mon
author_facet Abraham, Santosh Mon
author_sort Abraham, Santosh Mon
building Curtin Institutional Repository
collection Online Access
description This paper studies two contrarian strategy; one based on the Law of One Price and another based on the Markov switching strategy. The stock pairs are identified using a new derivation of the partial adjustment model. The Markov strategy is more profitable than the LOP strategy. This paper also tests international momentum effects between Chinese Shanghai Composite Index and Australian resource stocks. The enhanced indexing strategy is more profitable than the index tracking strategy.
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institution Curtin University Malaysia
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language English
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publishDate 2014
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spelling curtin-20.500.11937-16402017-02-20T06:38:09Z Testing international arbitrage: evidence from Chinese and Australian markets Abraham, Santosh Mon This paper studies two contrarian strategy; one based on the Law of One Price and another based on the Markov switching strategy. The stock pairs are identified using a new derivation of the partial adjustment model. The Markov strategy is more profitable than the LOP strategy. This paper also tests international momentum effects between Chinese Shanghai Composite Index and Australian resource stocks. The enhanced indexing strategy is more profitable than the index tracking strategy. 2014 Thesis http://hdl.handle.net/20.500.11937/1640 en Curtin University fulltext
spellingShingle Abraham, Santosh Mon
Testing international arbitrage: evidence from Chinese and Australian markets
title Testing international arbitrage: evidence from Chinese and Australian markets
title_full Testing international arbitrage: evidence from Chinese and Australian markets
title_fullStr Testing international arbitrage: evidence from Chinese and Australian markets
title_full_unstemmed Testing international arbitrage: evidence from Chinese and Australian markets
title_short Testing international arbitrage: evidence from Chinese and Australian markets
title_sort testing international arbitrage: evidence from chinese and australian markets
url http://hdl.handle.net/20.500.11937/1640