Automated regression procedure in Stata - stata

I'm going to study the relationship between the illiquidity and returns in stock markets, using the Amihud model proposed in the paper "Illiquidity and stock returns: cross-section and time-series effects" (2002). I would like to know if it is possible to automate the regression analysis. I've have more than 2000 stocks in the sample and I'd like to avoid to run each regression one-by-one, speeding the process up.
Do you know if it is possible automate this process in Stata? or if is it possible to do that using some other statistical software (R, SAS, Matlab, Gretl,...) ? If it is, how could I do that?

You should look at foreach and forval as ways of looping.
forval i = 1/3 {
regress Ystock`i' Xstock`i'
}
would be an example if and only if there are variables with names like those you indicated. If you have other names, or a different data structure, a loop would still be possible.

Related

Creating Matrix in Stata

I am simulating pga tournaments using Stata. My simulation results table consists of:
column 1: the names of the 30 players in the tournament
columns 2 - 30,001: the 4 round results of my monte-carol simulations.
what I am trying to do is create a 30 x 30 matrix with the golfers' names as column 1 and across the column names where each cell represents the percentage of times Golfer A beat Golfer B outright from the 30,000 simulations. Is this possible to do in Stata? Thanks
I tend to say that everything is always possible in all programming languages, but somethings are much more difficult to do in some languages compared to others. I do not think that Stata is great tool for what you intend to do.
You need to provide some code examples for us to be able to help you with your task, but here is one thing I can say. Stata has two programming languages. One is often called Stata (but is called ado on Stata Corps webiste) and the other is Mata. If you for some reason need to use the software Stata, you should do this in the language Mata that has more matrix operators than ado. And in ado you cant store text in a matrix, so if you want to store the name of the golfer you need to use Mata, but you can also use indexes of rows and columns to keep track of the golfers.
With that said, Stata is primarily a tool to make operations and analyze a single dataset loaded into memory (recently support for multiple datasets has been added). So to answer your question, yes, this can be done in Stata, but you are probably much better of doing it in a language with more support for multidimensional arrays/vectors. For example, R or Python.

Calculating the Black-Scholes Implied Volatility for Intraday Data in SAS

Sorry for possibly asking a very basic question. I am quite new to coding in SAS.
As I can see there is a standard SAS FCMP procedure to calculate the Black Scholes Implied Volatility for individual option data.
http://support.sas.com/documentation/cdl/en/proc/61895/HTML/default/viewer.htm#a003193738.htm
But my problem is that I have a data table of intraday option trading data that lists all the required fields, i.e. strike price, time to expiry, equity price, interest rate and volatility. Is there any way i can code so that I can calculate the implied volatility for these individual entries.
I understand that possibly i need to use some kind of loop to do so, but i am not able to understand how to pass values within procedures in SAS. Any help will be highly appreciated.

Why do I get different regression outputs in SAS and in Stata when using Prais-Winsten estimation?

I have a time series dataset with serious serial correlation problem, so I adopted Prais-Winsten estimator with iterated estimates to fix that. I did the regressions in Stata with the following command:
prais depvar indepvar indepvar2, vce(robust) rhotype(regress)
My colleague wanted to reproduce my results in SAS, so she used the following:
proc autoreg data=DATA;
model depvar = indepvar indepvar2/nlag=1 iter itprint method=YW;
run;
For the different specifications we ran, some of them roughly match, while others do not. Also I noticed that for each regression specification, Stata has many more iterations than SAS. I wonder if there is something wrong with my (or my colleague's) code.
Update
Inspired by Joe's comment, I modified my SAS code.
/*Iterated Estimation*/
proc autoreg data=DATA;
model depvar = indepvar indepvar2/nlag=1 itprint method=ITYW;
run;
/*Twostep Estimation*/
proc autoreg data=DATA;
model depvar = indepvar indepvar2/nlag=1 itprint method=YW;
run;
I have a few suggestions. Note that I'm not a real statistician and am not familiar with the specific estimators here, so this is just a quick read of the docs.
First off, the most likely issue is that it looks like SAS uses the OLS variance estimation method. That is, in your Stata code, you have vce(robust), which is in contrast to what I read SAS as using, the equivalent of vce(ols). See this page in the docs which explains how SAS does the Y-W method of autoregression, compared to this doc page that explains how Stata does it.
Second, you probably should not specify method=YW. SAS distinguishes between the simple Y-W estimation ("two-step" method) and iterated Y-W estimation. method=ITYW is what you want. You specify iter, so it may well be that you're getting this anyway as SAS tends to be smart about those sorts of things, but it's good to verify.
I would suggest actually turning the iterations off to begin with - have both do the two-step method (Stata option twostep, SAS by removing the iter request and specifying method=YW or no method specification). See how well they match there. Once you can get those to match, then move on to iterated; it's possible SAS has a different cutoff than Stata and may well not iterate past that.
I'd also suggest trying this with only one independent and dependent variable pair first, as it's possible the two programs handle things differently when you add in a second independent variable. Always start simple and then add complexity.

SAS Enterprise - Is it possible to show the mathematical formula behind the calculation?

is it possible to show the mathemetical formular / concept behind the analysis done with SAS Enterprise?
Assuming SAS would calculate a correlation between a list of numbers -- is it possible to see what exactly SAS did from a mathematical perspective?
It is not possible to ask SAS for the mathematical formula, no. You can check the documentation; for example, this page gives many of the 'elemantary statistics' formulas (like variance, UCLM, etc.)
If you need the formula behind something more complex that you can't find online, contact your SAS Support rep, and they may be able to put you in contact with the developer of that particular proc - like if you need to know some particular to how PROC GLM does something.
You can ask SAS to give you the SAS code that it ran if you executed a task (in most cases it's available by clicking on the task node), in many cases, but that would be something like proc freq; tables a*b; run;, not a mathematical formula per se.

Quantile Regression with Quantiles based on independent variable

I am attempting to run a quantile regression on monthly observations (of mutual fund characteristics). What I would like to do is distribute my observations in quintiles for each month (my dataset comprises 99 months). I want to base the quintiles on a variable (lagged fund size i.e. Total Net Assets) that will be later employed as an independent variable to explain fund performance.
What I already tried to do is use the qreg command, but that uses quantiles based on the dependent variable not the independent variable that is needed.
Moreover I tried to use the xtile command to create the quintiles; however, the by: command is not supported.
. by Date: xtile QLagTNA= LagTNA, nq(5)
xtile may not be combined with by
r(190);
Is there a (combination of) command(s) which saves me from creating quintiles manually on a month-by-month basis?
Statistical comments first before getting to your question, which has two Stata answers at least.
Quantile regression is defined by prediction of quantiles of the response (what you call the dependent variable). You may or may not want to do that, but using quantile-based groups for predictors does not itself make a regression a quantile regression.
Quantiles (here quintiles) are values that divide a variable into bands of defined frequency. Here you want the 0, 20, 40, 60, 80, 100% points. The bands, intervals or groups themselves are not best called quantiles, although many statistically-minded people would know what you mean.
What you propose seems common in economics and business, but it is still degrading the information in the data.
All that said, you could always write a loop using forval, something like this
egen group = group(Date)
su group, meanonly
gen QLagTNA = .
quietly forval d = 1/`r(max)' {
xtile work = LagTNA if group == `d', nq(5)
replace QLagTNA = work if group == `d'
drop work
}
For more, see this link
But you will probably prefer to download a user-written egen function [correct term here] to do this
ssc inst egenmore
h egenmore
The function you want is xtile().