• No results found

in business time may not hold in this situation. Also, it would be interesting to include other sources of information in the model, such as public news data and high-frequency option data, and assess whether they provide extra information to model high-frequency volatility in addition to the MMS variables used in this chapter. In Chapter 3, a potential limitation of the empirical findings is that the link from the regime classifications to the information content of the regimes requires further verification, due to the latent nature of information arrivals into the market. One could further augment the model by using physical news arrival data to examine the validity of this link.

4.4

Final Remarks

To sum up, this thesis presents important developments to the literature of point process based volatility estimators both in theory and applications. The findings show that the point process based estimator uses data more efficiently than the widely-applied RV approach, and has the advantage to use information other than the price process in volatility modelling and estimation. This thesis establishes the theoretical foundation of the point process based volatility estimator and advocates the use of point process based approach in future volatility modelling and MMS research.

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