• DocumentCode
    2970689
  • Title

    Price Recovery after Soared and Slump

  • Author

    Liu, Kuangmin ; Zhu, Hongliang ; Shi, Yunqing

  • Author_Institution
    Sch. of Manage. & Eng., Nanjing Univ., Nanjing, China
  • fYear
    2011
  • fDate
    12-14 Aug. 2011
  • Firstpage
    1
  • Lastpage
    4
  • Abstract
    Order driven market, is the main trading mechanism of the most securities markets in the world, including China´s securities market. We study the phenomenon of the stock market by computational experiment in limit order model. The typical phenomenon, volatility clustering and fat tail, can be reproduced by our model. Further, after adding the trend of investors and considering various parameters, we found that market price can recover by itself after soared and slump. And momentum investors will reduce the probability of the occurrence of price recovery.
  • Keywords
    investment; pattern clustering; pricing; probability; stock markets; China securities market; fat tail; investor trend; limit order model; market price; momentum investors; order driven market; price recovery occurrence probability; stock market; trading mechanism; volatility clustering; Analytical models; Data models; Finance; Fluctuations; Mathematical model; Security; Stock markets;
  • fLanguage
    English
  • Publisher
    ieee
  • Conference_Titel
    Management and Service Science (MASS), 2011 International Conference on
  • Conference_Location
    Wuhan
  • Print_ISBN
    978-1-4244-6579-8
  • Type

    conf

  • DOI
    10.1109/ICMSS.2011.5998570
  • Filename
    5998570