Thank you, gjlipman and HedgeQuant.I am trying to develop new trading strategy of stocks based on daily or hourly returns.Does that mean I have to use mathematical models instead?

<t>Hi, I am modelling stock returns. It seems there are two different ways in literature.1. Econometrics: we have CAPM framework2. Mathematics: we have a number of models, such as: jump-diffusion model, and pure jump model (Variance Gamma, CGMY)My question is: if I model one day return or one hour r...