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Related papers: Multivariate stochastic volatility modelling using…

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A Bayesian procedure is developed for multivariate stochastic volatility, using state space models. An autoregressive model for the log-returns is employed. We generalize the inverted Wishart distribution to allow for different correlation…

Statistical Finance · Quantitative Finance 2008-12-02 K. Triantafyllopoulos

We implement gradient-based variational inference routines for Wishart and inverse Wishart processes, which we apply as Bayesian models for the dynamic, heteroskedastic covariance matrix of a multivariate time series. The Wishart and…

Machine Learning · Statistics 2019-11-05 Creighton Heaukulani , Mark van der Wilk

The purpose of this paper is to propose a time-varying vector autoregressive model (TV-VAR) for forecasting multivariate time series. The model is casted into a state-space form that allows flexible description and analysis. The volatility…

Statistical Finance · Quantitative Finance 2008-12-02 K. Triantafyllopoulos

This paper develops a Bayesian procedure for estimation and forecasting of the volatility of multivariate time series. The foundation of this work is the matrix-variate dynamic linear model, for the volatility of which we adopt a…

Statistical Finance · Quantitative Finance 2008-12-02 K. Triantafyllopoulos

In this paper we develop a Bayesian procedure for estimating multivariate stochastic volatility (MSV) using state space models. A multiplicative model based on inverted Wishart and multivariate singular beta distributions is proposed for…

Statistical Finance · Quantitative Finance 2008-12-02 Kostas Triantafyllopoulos , Giovanni Montana

In this paper, we introduce two new matrix stochastic processes: fractional Wishart processes and $\varepsilon$-fractional Wishart processes with integer indices which are based on the fractional Brownian motions and then extend…

Optimization and Control · Mathematics 2017-05-16 Jia Yue , Nan-jing Huang

This study introduces a new analytical framework for quantifying multivariate risk measures. Using the Wishart process, which is a stochastic process with values in the space of positive definite matrices, we derive several conditional tail…

Risk Management · Quantitative Finance 2026-02-09 Jose Da Fonseca , Patrick Wong

Based on a student research project this article gives a short review on Wishart processes. A Wishart procces is a matrix valued continuous time stochastic process with a marginal Wishart distribution. The Wishart distribution is a matrix…

Probability · Mathematics 2012-01-17 Oliver Pfaffel

We introduce and explore a new class of stationary time series models for variance matrices based on a constructive definition exploiting inverse Wishart distribution theory. The main class of models explored is a novel class of stationary,…

Methodology · Statistics 2011-07-27 Emily B. Fox , Mike West

We prove a large deviations principle for the class of multidimensional affine stochastic volatility models considered in (Gourieroux, C. and Sufana, R., J. Bus. Econ. Stat., 28(3), 2010), where the volatility matrix is modelled by a…

Pricing of Securities · Quantitative Finance 2018-06-20 Aurélien Alfonsi , David Krief , Peter Tankov

In this article, we propose an exact simulation method of the Wishart multidimensional stochastic volatility (WMSV) model, which was recently introduced by Da Fonseca et al. \cite{DGT08}. Our method is based onanalysis of the conditional…

Pricing of Securities · Quantitative Finance 2013-09-04 Chulmin Kang , Wanmo Kang

Many economic variables feature changes in their conditional mean and volatility, and Time Varying Vector Autoregressive Models are often used to handle such complexity in the data. Unfortunately, when the number of series grows, they…

Econometrics · Economics 2022-01-19 G. Cubadda , S. Grassi , B. Guardabascio

This paper develops a flexible and computationally efficient multivariate volatility model, which allows for dynamic conditional correlations and volatility spillover effects among financial assets. The new model has desirable properties…

Methodology · Statistics 2025-07-25 Wenyu Li , Yuchang Lin , Qianqian Zhu , Guodong Li

Our article considers a regression model with observed factors. The observed factors have a flexible stochastic volatility structure that has separate dynamics for the volatilities and the correlation matrix. The correlation matrix of the…

Other Statistics · Statistics 2011-07-14 Yu-Cheng Ku , Peter Bloomfield , Robert Kohn

We present a Bayesian non-parametric way of inferring stochastic differential equations for both regression tasks and continuous-time dynamical modelling. The work has high emphasis on the stochastic part of the differential equation, also…

Machine Learning · Statistics 2020-06-29 Martin Jørgensen , Marc Peter Deisenroth , Hugh Salimbeni

This paper develops a methodology for approximating the posterior first two moments of the posterior distribution in Bayesian inference. Partially specified probability models, which are defined only by specifying means and variances, are…

Methodology · Statistics 2009-01-27 K. Triantafyllopoulos , P. J. Harrison

We provide a simple method to estimate the parameters of multivariate stochastic volatility models with latent factor structures. These models are very useful as they alleviate the standard curse of dimensionality, allowing the number of…

Econometrics · Economics 2023-02-15 Giorgio Calzolari , Roxana Halbleib , Christian Mücher

We propose a two stage procedure for the estimation of the parameters of a fairly general, continuous-time stochastic volatility. An important ingredient of the proposed method is the Cuchiero-Teichmann volatility estimator, which is based…

Statistics Theory · Mathematics 2018-12-31 Milan Merkle , Yuri F. Saporito , Rodrigo S. Targino

We develop a Bayesian vector autoregressive (VAR) model with multivariate stochastic volatility that is capable of handling vast dimensional information sets. Three features are introduced to permit reliable estimation of the model. First,…

Computation · Statistics 2020-03-12 Gregor Kastner , Florian Huber

We discuss efficient Bayesian estimation of dynamic covariance matrices in multivariate time series through a factor stochastic volatility model. In particular, we propose two interweaving strategies (Yu and Meng, Journal of Computational…

Computation · Statistics 2019-08-07 Gregor Kastner , Sylvia Frühwirth-Schnatter , Hedibert Freitas Lopes
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