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Fractal Dimensional Analysis in Financial Time Series

International Journal of Financial Management

Volume 5 Issue 3

Published: 2015
Author(s) Name: S. J. Bhatt, H. V. Dedania, Vipul R. Shah | Author(s) Affiliation:
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Abstract

A predictability index for time series of a financial market vector consisting of chosen market parameters is suggested providing a measure of long range predictability of the market. It is based on fractional Brownian motion that includes Brownian motion as a particular case followed by the time series of financial market parameters. By analyzing respective time series, these indices are computed for parameters like volatility, FII investments in the local market, IIP numbers, CPI numbers, Dow Jones Index, different stock market indices, currency rates, and gold prices.

Keywords: Fractional Brownian Motion, Hurst Exponent, Fractal Dimension, Predictability Index

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