Assessing the Performance of Parametric, Non-Parametric and Semi-Parametric Value-at-Risk Models Applied to the Chinese Stock Market

In this paper, parametric, nonparametric, and semiparametric models are applied to a hypothetical portfolio consisting a single asset-Shanghai Stock Index 180, to assess their performance in the Chinese stock market. Some stylized facts and features of stock returns have been documented by many empi...

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Main Author: PENG, BO
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2006
Subjects:
Online Access:https://eprints.nottingham.ac.uk/20211/
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author PENG, BO
author_facet PENG, BO
author_sort PENG, BO
building Nottingham Research Data Repository
collection Online Access
description In this paper, parametric, nonparametric, and semiparametric models are applied to a hypothetical portfolio consisting a single asset-Shanghai Stock Index 180, to assess their performance in the Chinese stock market. Some stylized facts and features of stock returns have been documented by many empirical studies, and which have been found to be important for VaR estimations. The main findings of this paper are: the fat tailness in stock return distribution is the most important stylized fact for increasing the accuracy of VaR estimations, while leverage effects is found to be most important for properly modelling the time-series behaviour of VaR estimations. Among all the tested models, based on whole performance, GARCH (1.1)-t (d) model is found to be the most appropriate model for measuring the risk of the Chinese stock market.
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spelling nottingham-202112018-04-24T17:31:39Z https://eprints.nottingham.ac.uk/20211/ Assessing the Performance of Parametric, Non-Parametric and Semi-Parametric Value-at-Risk Models Applied to the Chinese Stock Market PENG, BO In this paper, parametric, nonparametric, and semiparametric models are applied to a hypothetical portfolio consisting a single asset-Shanghai Stock Index 180, to assess their performance in the Chinese stock market. Some stylized facts and features of stock returns have been documented by many empirical studies, and which have been found to be important for VaR estimations. The main findings of this paper are: the fat tailness in stock return distribution is the most important stylized fact for increasing the accuracy of VaR estimations, while leverage effects is found to be most important for properly modelling the time-series behaviour of VaR estimations. Among all the tested models, based on whole performance, GARCH (1.1)-t (d) model is found to be the most appropriate model for measuring the risk of the Chinese stock market. 2006 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/20211/1/06_MA_bopeng688.pdf PENG, BO (2006) Assessing the Performance of Parametric, Non-Parametric and Semi-Parametric Value-at-Risk Models Applied to the Chinese Stock Market. [Dissertation (University of Nottingham only)] (Unpublished) Value at risk VaR GARCH Historical simulation
spellingShingle Value at risk
VaR
GARCH
Historical simulation
PENG, BO
Assessing the Performance of Parametric, Non-Parametric and Semi-Parametric Value-at-Risk Models Applied to the Chinese Stock Market
title Assessing the Performance of Parametric, Non-Parametric and Semi-Parametric Value-at-Risk Models Applied to the Chinese Stock Market
title_full Assessing the Performance of Parametric, Non-Parametric and Semi-Parametric Value-at-Risk Models Applied to the Chinese Stock Market
title_fullStr Assessing the Performance of Parametric, Non-Parametric and Semi-Parametric Value-at-Risk Models Applied to the Chinese Stock Market
title_full_unstemmed Assessing the Performance of Parametric, Non-Parametric and Semi-Parametric Value-at-Risk Models Applied to the Chinese Stock Market
title_short Assessing the Performance of Parametric, Non-Parametric and Semi-Parametric Value-at-Risk Models Applied to the Chinese Stock Market
title_sort assessing the performance of parametric, non-parametric and semi-parametric value-at-risk models applied to the chinese stock market
topic Value at risk
VaR
GARCH
Historical simulation
url https://eprints.nottingham.ac.uk/20211/