J. F. Muzy

  1. Non-parametric kernel estimation for symmetric Hawkes processes. Application to high frequency financial data.

    Authors: E. Bacry, K. Dayri, J. F. Muzy
    Subjects: Trading and Market Microstructure
    Abstract

    We define a numerical method that provides a non-parametric estimation of the
    kernel shape in symmetric multivariate Hawkes processes. This method relies on
    second order statistical properties of Hawkes processes that relate the
    covariance matrix of the process to the kernel matrix. The square root of the
    correlation function is computed using a minimal phase recovering method. We
    illustrate our method on some examples and provide an empirical study of the
    estimation errors. Within this framework, we analyze high frequency financial
    price data modeled as 1D or 2D Hawkes processes.

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