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Modeling and Forecasting Trading Volume Index: GARCH versus TGARCH Approach
Journal article   Peer reviewed

Modeling and Forecasting Trading Volume Index: GARCH versus TGARCH Approach

Md Sabiruzzaman, Md M Huq, R A Beg and Sajid Anwar
Quarterly Review of Economics and Finance, Vol.50(2), pp.141-145
2010
url
https://doi.org/10.1016/j.qref.2009.11.006View
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Abstract

trading volume volatility GARCH TGARCH leverage effect high frequency data
Volatility has been described as an indicator of uncertainty which has implications for investment decisions, risk management as well as monetary policy. This paper investigates the pattern of volatility in the daily trading volume index of Hong Kong stock exchange. The empirical evidence provided in this paper suggests that TGARCH specification is superior to GARCH specification. This is particularly important when one is dealing with the case of asymmetric information that captures the leverage effect of the volatile stock market.

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