FINANCIAL TIME SERIES ANALYSIS

 

·        Type of course

Elective

·        Level of course

Advanced Undergraduate

·        Year of study

2005-2006

·        Semester

spring

·        Number of credits allocated

ECTS 6

·        Name of lecturer

Dr Raphael N. Markellos

·        Objective of the course (expected learning outcomes and competences to be acquired)

The theory and practice of finance in recent years is increasingly based on time series analysis. The objective of this course is to present some important time series methods and tools along with their application to specific financial problems ranging from financial analysis, asset pricing, trading, forecasting, etc. Special attention will be given in the implementation of the methods taught using specialized software packages. Starting from the celebrated univariate ARMA framework the course will introduce the notions of nonstationarity, nonlinearity, stochastic volatility, long-run equilibrium relationships, long-memory and multivariate time series models. At the end of the course the students will be able to describe and identify the characteristics of financial time series such as stocks, exchange rates, interest rates, commodity prices, etc. They will also be able to evaluate and select the most appropriate model using a variety of testing procedures.

·             Prerequisites

Basic Econometrics and Statistics

·        Course contents

    Foundations of Financial Econometrics

    ARMA Modelling

    Nonstationarity

    Long-Memory

    Volatility Modelling

    Nonlinear Models

    Cointegration Analysis

    Vector ARMA

 

1.       Recommended reading

&   Mills, T.C. (1999) The Econometric Modelling of Financial Time Series, Cambridge University Press

&   Hamilton, J.D. (1994) Time Series Analysis, Princeton University Press

&   Brooks, C. (2002) Introductory Econometrics for Finance, Cambridge University Press

&   Markellos, R.N. Lecture Notes

 

Lectures with Study Groups

Written Exams and Coursework

English