Feedback Trading and Bubbles

2021 ◽  
Author(s):  
Brandon Yueyang Han ◽  
Igor Makarov
Keyword(s):  
Feedback Trading

Relationship between Foreign Portfolio Investments (FPI), Domestic Institutional Investors, and Stock Market Returns in India

GIS Business ◽  
2017 ◽  
Vol 12 (6) ◽  
pp. 1-9
Author(s):  
Dhananjaya Kadanda ◽  
Krishna Raj
Keyword(s):  
Stock Market ◽  
Institutional Investors ◽  
Negative Relationship ◽  
Trading Strategies ◽  
Market Returns ◽  
Stock Market Returns ◽  
Foreign Portfolio Investment ◽  
Stock Market Return ◽  
Indian Stock Market ◽  
Feedback Trading

The present article attempts to understand the relationship between foreign portfolio investment (FPI), domestic institutional investors (DIIs), and stock market returns in India using high frequency data. The study analyses the trading strategies of FPIs, DIIs and its impact on the stock market return. We found that the trading strategies of FIIs and DIIs differ in Indian stock market. While FIIs follow positive feedback trading strategy, DIIs pursue the strategy of negative feedback trading which was more pronounced during the crisis. Further, there is negative relationship between FPI flows and DII flows. The results indicate the importance of developing strong domestic institutional investors to counteract the destabilising nature FIIs, particularly during turbulent times.

Chasing Absolute Returns: A Tale of Feedback Trading by Hedge Funds

2011 ◽  
Author(s):  
Marc Schauten ◽  
Robin Willemstein ◽  
Remco C. J. Zwinkels
Keyword(s):  
Hedge Funds ◽  
Feedback Trading

The Influence of Feedback Trading on KOSPI Index Return Autocorrelation

2019 ◽  
Vol 32 (1) ◽  
pp. 77-93
Author(s):  
Ho Lee ◽  
Kyong-Won Park ◽  
Tae-Keun Kim
Keyword(s):  
Feedback Trading

scholarly journals Bayesian analysis of time-varying interactions between stock returns and foreign equity flows

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Boubekeur Baba ◽  
Güven Sevil
Keyword(s):  
Stock Returns ◽  
Negative Feedback ◽  
Positive Feedback ◽  
Positive Response ◽  
Time Varying ◽  
Economic Uncertainty ◽  
Foreign Investors ◽  
New Findings ◽  
Net Flows ◽  
Feedback Trading

AbstractThis study discusses the trading behavior of foreign investors with respect to economic uncertainty in the South Korean stock market from a time-varying perspective. We employ a news-based measure of economic uncertainty along with the model of time-varying parameter vector autoregression with stochastic volatility. The empirical analysis reveals several new findings about foreign investors’ trading behaviors. First, we find evidence that positive feedback trading often appears during periods of high economic uncertainty, whereas negative feedback trading is exclusively observable during periods of low economic uncertainty. Second, the foreign investors’ feedback trading appears mostly to be well-timed and often leads the time-varying economic uncertainty except in periods of global crises. Third, lagged negative (positive) response of net flows to economic uncertainty is found to be coupled with lagged positive (negative) feedback trading. Fourth, the study documents an asymmetric response of foreign investors with regard to negative and positive shocks of economic uncertainty. Specifically, we find that they instantly turn to positive feedback trading after a negative contemporaneous response of net flows to shocks of economic uncertainty. In contrast, they move slowly toward negative feedback trading after a positive response of net flows to uncertainty shocks.

The determinants of positive feedback trading behaviors in Bitcoin markets

2021 ◽  
pp. 102120
Author(s):  
Jying-Nan Wang ◽  
Yen-Hsien Lee ◽  
Hung-Chun Liu ◽  
Ming-Chih Lee
Keyword(s):  
Positive Feedback ◽  
Feedback Trading

scholarly journals The Impact of Universal Stock Futures on Feedback Trading and Volatility Dynamics

2008 ◽  
Vol 35 (1-2) ◽  
pp. 227-249 ◽  
Author(s):  
Frankie Chau ◽  
Phil Holmes ◽  
Krishna Paudyal
Keyword(s):  
The Impact ◽  
Feedback Trading
Sign in / Sign up

Export Citation Format

Share Document