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highfrequency (version 0.4)

rSkew: Realized skewness of highfrequency return series.

Description

Function returns Realized skewness, defined in Amaya et al. (2011). Assume there is $N$ equispaced returns in period $t$. Let $r_{t,i}$ be a return (with $i=1, \ldots,N$) in period $t$. Then, the rSkew is given by $$\mbox{rSkew}_{t}= \frac{\sqrt{N} \sum_{i=1}^{N}(r_{t,i})^3}{RV_{t}^{3/2}}$$ in which $RV_{t}:$ realized variance

Usage

rSkew (rdata,align.by=NULL,align.period=NULL,makeReturns=FALSE,...)

Arguments

rdata
a zoo/xts object containing all returns in period t for one asset.
align.by
a string, align the tick data to "seconds"|"minutes"|"hours"
align.period
an integer, align the tick data to this many [seconds|minutes|hours].
makeReturns
boolean, should be TRUE when rdata contains prices instead of returns. FALSE by default.
...
additional arguments.

Value

  • numeric

References

Amaya, D., Christoffersen, P., Jacobs, K. and Vasquez, A. (2011). Do realized skewness and kurtosis predict the cross-section of equity returns?. CREATES research paper. p. 3-7.

Examples

Run this code
data(sample_tdata)
rSkew(sample_tdata$PRICE,align.by ="minutes", align.period =5, makeReturns = TRUE)

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