The impact of momentum trades on return comovements and asymmetric volatility in dual listings

We empirically investigate the impact of volume on serial return comovements (continuation vs. reversal) and asymmetric volatility (inverse relation with excess return) of 175 ADRs and their underlying securities in 27 countries. We classify +/-/0 trade momentum days based on a joint distribution of...

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Main Authors: Dey, Malay K., Wang, Chaoyan
Format: Monograph
Language:English
Published: Unpublished 2018
Subjects:
Online Access:https://eprints.nottingham.ac.uk/56836/
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author Dey, Malay K.
Wang, Chaoyan
author_facet Dey, Malay K.
Wang, Chaoyan
author_sort Dey, Malay K.
building Nottingham Research Data Repository
collection Online Access
description We empirically investigate the impact of volume on serial return comovements (continuation vs. reversal) and asymmetric volatility (inverse relation with excess return) of 175 ADRs and their underlying securities in 27 countries. We classify +/-/0 trade momentum days based on a joint distribution of volume and return and determine how momentum affects return comovements and asymmetric volatility. Our VAR estimates confirm asymmetric volume comovements, positive volume return correlations implying continuation, and non-monotonic effects of excess return on volatility among ADRs and their underlying home shares. Return comovements and asymmetric volatility are associated with momentum, size, and liquidity.
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institution University of Nottingham Malaysia Campus
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language English
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publishDate 2018
publisher Unpublished
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spelling nottingham-568362019-06-10T12:13:38Z https://eprints.nottingham.ac.uk/56836/ The impact of momentum trades on return comovements and asymmetric volatility in dual listings Dey, Malay K. Wang, Chaoyan We empirically investigate the impact of volume on serial return comovements (continuation vs. reversal) and asymmetric volatility (inverse relation with excess return) of 175 ADRs and their underlying securities in 27 countries. We classify +/-/0 trade momentum days based on a joint distribution of volume and return and determine how momentum affects return comovements and asymmetric volatility. Our VAR estimates confirm asymmetric volume comovements, positive volume return correlations implying continuation, and non-monotonic effects of excess return on volatility among ADRs and their underlying home shares. Return comovements and asymmetric volatility are associated with momentum, size, and liquidity. Unpublished 2018-01-01 Monograph NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/56836/1/The%20Impact%20of%20Momentum%20Trades%20on%20Return%20Comovements%20and%20Asymmetric%20Volatility%20in%20Dual%20Listings.pdf Dey, Malay K. and Wang, Chaoyan (2018) The impact of momentum trades on return comovements and asymmetric volatility in dual listings. Working Paper. Unpublished. (Unpublished) ADR; Volume comovement; Return correlation; Volatility; VAR
spellingShingle ADR; Volume comovement; Return correlation; Volatility; VAR
Dey, Malay K.
Wang, Chaoyan
The impact of momentum trades on return comovements and asymmetric volatility in dual listings
title The impact of momentum trades on return comovements and asymmetric volatility in dual listings
title_full The impact of momentum trades on return comovements and asymmetric volatility in dual listings
title_fullStr The impact of momentum trades on return comovements and asymmetric volatility in dual listings
title_full_unstemmed The impact of momentum trades on return comovements and asymmetric volatility in dual listings
title_short The impact of momentum trades on return comovements and asymmetric volatility in dual listings
title_sort impact of momentum trades on return comovements and asymmetric volatility in dual listings
topic ADR; Volume comovement; Return correlation; Volatility; VAR
url https://eprints.nottingham.ac.uk/56836/