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We propose a novel estimation procedure for scale-by-scale lead-lag relationships of financial assets observed at high-frequency in a non-synchronous manner. The proposed estimation procedure does not require any interpolation processing of…

Methodology · Statistics 2020-05-11 Takaki Hayashi , Yuta Koike

In time-series analysis, the term "lead-lag effect" is used to describe a delayed effect on a given time series caused by another time series. lead-lag effects are ubiquitous in practice and are specifically critical in formulating…

Statistical Finance · Quantitative Finance 2020-02-04 Katsuya Ito , Kei Nakagawa

Investigating the relationship, particularly the lead-lag effect, between time series is a common question across various disciplines, especially when uncovering biological process. However, analyzing time series presents several…

Recently the interest of researchers has shifted from the analysis of synchronous relationships of financial instruments to the analysis of more meaningful asynchronous relationships. Both of those analyses are concentrated only on…

Statistical Finance · Quantitative Finance 2014-06-18 Paweł Fiedor

We propose a novel framework to investigate lead-lag relationships between two financial assets. Our framework bridges a gap between continuous-time modeling based on Brownian motion and the existing wavelet methods for lead-lag analysis…

Methodology · Statistics 2018-11-13 Takaki Hayashi , Yuta Koike

In this paper we introduce a general method for estimating the quadratic covariation of one or more spot parameters processes associated with continuous time semimartingales. This estimator is applicable to a wide range of spot parameter…

Statistics Theory · Mathematics 2020-11-26 Emil A. Stoltenberg , Per A. Mykland , Lan Zhang

This paper introduces a new theoretical framework for analyzing lead-lag relationships between point processes, with a special focus on applications to high-frequency financial data. In particular, we are interested in lead-lag…

Statistics Theory · Mathematics 2026-01-06 Takaaki Shiotani , Takaki Hayashi , Yuta Koike

We consider a diffusion $(\xi_t)_{t\ge 0}$ whose drift contains some deterministic periodic signal. Its shape being fixed and known, up to scaling in time, the periodicity of the signal is the unknown parameter $\vartheta$ of interest. We…

Statistics Theory · Mathematics 2010-10-26 Reinhard Hoepfner , Yury Kutoyants

We consider a multidimensional It\^o process $Y=(Y_t)_{t\in[0,T]}$ with some unknown drift coefficient process $b_t$ and volatility coefficient $\sigma(X_t,\theta)$ with covariate process $X=(X_t)_{t\in[0,T]}$, the function…

Statistics Theory · Mathematics 2009-06-18 Stefano M. Iacus , Nakahiro Yoshida

The existence of time-lagged cross-correlations between the returns of a pair of assets, which is known as the lead-lag relationship, is a well-known stylized fact in financial econometrics. Recently some continuous-time models have been…

Mathematical Finance · Quantitative Finance 2017-12-29 Takaki Hayashi , Yuta Koike

Symbolic transfer entropy is a powerful non-parametric tool to detect lead-lag between time series. Because a closed expression of the distribution of Transfer Entropy is not known for finite-size samples, statistical testing is often…

Statistical Finance · Quantitative Finance 2022-06-22 Christian Bongiorno , Damien Challet

The lead-lag relationship plays a vital role in financial markets. It is the phenomenon where a certain price-series lags behind and partially replicates the movement of leading time-series. The present research proposes a new technique…

Statistical Finance · Quantitative Finance 2020-05-12 Kartikay Gupta , Niladri Chatterjee

In multivariate time series systems, it has been observed that certain groups of variables partially lead the evolution of the system, while other variables follow this evolution with a time delay; the result is a lead-lag structure amongst…

Machine Learning · Statistics 2022-01-21 Stefanos Bennett , Mihai Cucuringu , Gesine Reinert

We propose model-free (nonparametric) estimators of the volatility of volatility and leverage effect using high-frequency observations of short-dated options. At each point in time, we integrate available options into estimates of the…

Econometrics · Economics 2024-01-24 Carsten H. Chong , Viktor Todorov

In linear models, omitting a covariate that is orthogonal to covariates in the model does not result in biased coefficient estimation. This in general does not hold for longitudinal data, where additional assumptions are needed to get…

Statistics Theory · Mathematics 2023-05-30 Zhuowei Sun , Hongyuan Cao , Li Chen , Jason P. Fine

We consider varying-coefficient models for mixed synchronous and asynchronous longitudinal covariates, where asynchronicity refers to the misalignment of longitudinal measurement times within an individual. We propose three different…

Methodology · Statistics 2023-05-30 Congmin Liu , Zhuowei Sun , Hongyuan Cao

This paper offers a new approach for estimating and forecasting the volatility of financial time series. No assumption is made about the parametric form of the processes. On the contrary, we only suppose that the volatility can be…

Statistics Theory · Mathematics 2007-06-13 Danilo Mercurio , Vladimir Spokoiny

In this article we focus on estimating the quadratic covariation of continuous semimartingales from discrete observations that take place at asynchronous observation times. The Hayashi-Yoshida estimator serves as synchronized realized…

Statistics Theory · Mathematics 2011-06-22 Markus Bibinger

When estimating high-frequency covariance (quadratic covariation) of two arbitrary assets observed asynchronously, simple assumptions, such as independence, are usually imposed on the relationship between the prices process and the…

Statistical Finance · Quantitative Finance 2016-11-10 Yoann Potiron , Per Mykland

We revisit a model for time-varying linear regression that assumes the unknown parameters evolve according to a linear dynamical system. Counterintuitively, we show that when the underlying dynamics are stable the parameters of this model…

Statistics Theory · Mathematics 2022-01-03 Ali Jadbabaie , Horia Mania , Devavrat Shah , Suvrit Sra
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