In order to backtest a VaR using the independence test of Christoffersen (1998) I calculate the following likelihood ratio (LR):
My problem is that I land on a negative LR and:
- I don't know why this is the case?
- If this is correct, how should I interpret this? There is no negative critical value in the Chi-square table
The excel file containing all the step by step calculations and explanations is attached here: