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How to scale autocorrelated returns
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From : bionicturtledotcom
Added: Feb 16, 2009
If we apply the square root rule (i.e., variance scales with time), we assume returns are i.i.d., which is not realistic. Here is a scaling factor that adjusts for autocorrelation.
Category : Howto
Added: Feb 16, 2009
If we apply the square root rule (i.e., variance scales with time), we assume returns are i.i.d., which is not realistic. Here is a scaling factor that adjusts for autocorrelation.
Category : Howto
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