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This paper introduces a spatiotemporal exponential generalised autoregressive conditional heteroscedasticity (spatiotemporal E-GARCH) model, extending traditional spatiotemporal GARCH models by incorporating asymmetric volatility…

Applications · Statistics 2025-11-10 Ariane Nidelle Meli Chrisko , Philipp Otto , Wolfgang Schmid

Volatility, which indicates the dispersion of returns, is a crucial measure of risk and is hence used extensively for pricing and discriminating between different financial investments. As a result, accurate volatility prediction receives…

Computational Finance · Quantitative Finance 2024-10-02 Zeda Xu , John Liechty , Sebastian Benthall , Nicholas Skar-Gislinge , Christopher McComb

One of the most important features of financial time series data is volatility. There are often structural changes in volatility over time, and an accurate estimation of the volatility of financial time series requires careful…

Methodology · Statistics 2022-10-24 Huaiyu Hu , Ashis Gangopadhyay

Understanding the time-varying structure of complex temporal systems is one of the main challenges of modern time series analysis. In this paper, we show that every uniformly-positive-definite-in-covariance and sufficiently short-range…

Statistics Theory · Mathematics 2023-04-25 Xiucai Ding , Zhou Zhou

Time series of individual subjects have become a common data type in psychological research. These data allow one to estimate models of within-subject dynamics, and thereby avoid the notorious problem of making within-subjects inferences…

Applications · Statistics 2020-03-16 Jonas M B Haslbeck , Laura F Bringmann , Lourens J Waldorp

In this paper, we introduce an asymptotic test procedure to assess the stability of volatilities and cross-volatilites of linear and nonlinear multivariate time series models. The test is very flexible as it can be applied, for example, to…

Statistics Theory · Mathematics 2009-11-20 Alexander Aue , Siegfried Hörmann , Lajos Horváth , Matthew Reimherr

Volatility asymmetry is a hot topic in high-frequency financial market. In this paper, we propose a new econometric model, which could describe volatility asymmetry based on high-frequency historical data and low-frequency historical data.…

Methodology · Statistics 2021-01-15 Huiling Yuan , Yong Zhou , Lu Xu , Yun Lei Sun , Xiang Yu Cui

Volatility forecasting is essential for risk management and decision-making in financial markets. Traditional models like Generalized Autoregressive Conditional Heteroskedasticity (GARCH) effectively capture volatility clustering but often…

Mathematical Finance · Quantitative Finance 2024-10-23 Pulikandala Nithish Kumar , Nneka Umeorah , Alex Alochukwu

Volatility is a key measure of risk in financial analysis. The high volatility of one financial asset today could affect the volatility of another asset tomorrow. These lagged effects among volatilities - which we call volatility spillovers…

Statistical Finance · Quantitative Finance 2017-08-08 Luca Barbaglia , Christophe Croux , Ines Wilms

This paper introduces novel volatility diffusion models to account for the stylized facts of high-frequency financial data such as volatility clustering, intra-day U-shape, and leverage effect. For example, the daily integrated volatility…

Methodology · Statistics 2022-06-01 Donggyu Kim , Minseok Shin

The use of factor stochastic volatility models requires choosing the number of latent factors used to describe the dynamics of the financial returns process; however, empirical evidence suggests that the number and makeup of pertinent…

Applications · Statistics 2019-03-06 Taylor R. Brown

This paper considers nonparametric estimation and inference in first-order autoregressive (AR(1)) models with deterministically time-varying parameters. A key feature of the proposed approach is to allow for time-varying stationarity in…

Econometrics · Economics 2024-11-04 Donald W. K. Andrews , Ming Li

Various spatiotemporal and network GARCH models have recently been proposed to capture volatility interactions, such as the transmission of market risk across financial networks. These approaches rely heavily on the specification of the…

Applications · Statistics 2026-03-03 Ariane N. Meli Chrisko , Jessie Li , Philipp Otto , Wolfgang Schmid

Predictive linear and nonlinear models based on kernel machines or deep neural networks have been used to discover dependencies among time series. This paper proposes an efficient nonlinear modeling approach for multiple time series, with a…

Machine Learning · Computer Science 2023-10-02 Kevin Roy , Luis Miguel Lopez-Ramos , Baltasar Beferull-Lozano

We propose Neural GARCH, a class of methods to model conditional heteroskedasticity in financial time series. Neural GARCH is a neural network adaptation of the GARCH 1,1 model in the univariate case, and the diagonal BEKK 1,1 model in the…

Machine Learning · Computer Science 2022-02-24 Zexuan Yin , Paolo Barucca

A buffered double autoregressive (BDAR) time series model is proposed in this paper to depict the buffering phenomenon of conditional mean and conditional variance in time series. To build this model, a novel flexible regime switching…

Methodology · Statistics 2018-10-30 Zhao Liu

Predicting volatility in financial markets, including stocks, index ETFs, foreign exchange, and cryptocurrencies, remains a challenging task due to the inherent complexity and non-linear dynamics of these time series. In this study, I apply…

Statistical Finance · Quantitative Finance 2024-10-17 Alex Li

Volatility, as a measure of uncertainty, plays a crucial role in numerous financial activities such as risk management. The Econometrics and Machine Learning communities have developed two distinct approaches for financial volatility…

Statistical Finance · Quantitative Finance 2024-02-13 Pengfei Zhao , Haoren Zhu , Wilfred Siu Hung NG , Dik Lun Lee

Nonlinear initial value turbulence simulations often exhibit large temporal variations in their dynamics. Quantifying the temporal uncertainty of turbulence simulation outputs is an important component of validating the simulation results…

Plasma Physics · Physics 2019-03-01 Payam Vaezi , Chris Holland

Time reversal invariance can be summarized as follows: no difference can be measured if a sequence of events is run forward or backward in time. Because price time series are dominated by a randomness that hides possible structures and…

Statistical Finance · Quantitative Finance 2008-12-02 Gilles Zumbach