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Time-varying beta of Russian companies

Journal of Applied Economic Sciences. 2016. Vol. XI. No. 8(46). P. 1624–1642.
Asaturov K. G.

This paper examines the dynamic beta of Russian companies within the framework of the market model. The closing weekly prices of 29 Russian stocks, six Russian sector indices and the MICEX Index as a market index during the period from January 2009 to June 2015 are used to estimate time-varying beta using various econometric techniques. According to the results for the analyzed period, semiparametric regressions are confirmed to be the most effective model. As regards the forecast period, multivariate GARCH models surprisingly outperform all the other methods. An analysis of beta dynamics shows that most of time-varying betas are non-stationary.

Language: English
Text on another site
Keywords: Russian stock marketKalman filterTime-varying betaSemiparametric regressionDCC-GARCH model
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