Financial Econometrics
Module code: EC7079
In this module you will study the application of econometric techniques - mainly time series techniques - to financial markets.
Topics covered
- Autocorrelation in time series
- Co-integration of time series
- Correlation between time series
- Estimation of volatility using techniques such as exponentially weighted moving average (EWMA)
- Autoregressive conditional heteroskedasticity (ARCH) and generalised autoregressive conditional heteroskedasticity (GARCH)
- Volatility term structures
- Application and use of Monte Carlo techniques
- Testing for predictability of returns
- Implications for assumptions of normality in financial market returns