New approach of directional dependence in exchange markets using generalized FGM copula function

Document Type

Conference Proceeding

Publication Title

Communications in Statistics: Simulation and Computation

Abstract

This article presents an application of copula methodology in exchange markets. In this article, we consider the concept of directional dependence given by Sungur (2005). We also consider and study directional dependence for generalized Farlie-Gumbel-Morgenstern (FGM) distributions, which are a member of the Rodríguez-Lallena and Úbeda-Flores (2004) family, C(u, v) = uv + f(u)g(v). Examples of the generalized FGM distributions are provided with exchange market data of the Euro, Canadian dollar, Korean Won, Japanese Yen, and Hong Kong dollar against the U.S. dollar.

First Page

772

Last Page

788

DOI

10.1080/03610910701711091

Publication Date

4-1-2008

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