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Probabilistic forecasting of time series is an important matter in many applications and research fields. In order to draw conclusions from a probabilistic forecast, we must ensure that the model class used to approximate the true…

Machine Learning · Computer Science 2022-07-12 David Rügamer , Philipp F. M. Baumann , Thomas Kneib , Torsten Hothorn

We study the problem of stationarity and ergodicity for autoregressive multinomial logistic time series models which possibly include a latent process and are defined by a GARCH-type recursive equation. We improve considerably upon the…

Statistics Theory · Mathematics 2018-10-02 Konstantinos Fokianos , Lionel Truquet

Recent lightweight MLP-based models have achieved strong performance in time series forecasting by capturing stable trends and seasonal patterns. However, their effectiveness hinges on an implicit assumption of local stationarity…

Machine Learning · Computer Science 2026-01-29 Zhiyu Chen , Minhao Liu , Yanru Zhang

In this paper we propose a recursive online algorithm for estimating the parameters of a time-varying ARCH process. The estimation is done by updating the estimator at time point $t-1$ with observations about the time point $t$ to yield an…

Statistics Theory · Mathematics 2009-09-29 Rainer Dahlhaus , Suhasini Subba Rao

Incorporating nonlinearity is paramount to predicting the future states of a dynamical system, its response to shocks, and its underlying causal network. However, most existing methods for causality detection and impulse response, such as…

Machine Learning · Statistics 2019-10-08 Kurt Izak Cabanilla , Kevin Thomas Go

In this paper, we analyze the time-series of minute price returns on the Bitcoin market through the statistical models of generalized autoregressive conditional heteroskedasticity (GARCH) family. Several mathematical models have been…

Statistical Finance · Quantitative Finance 2021-02-01 Irena Barjašić , Nino Antulov-Fantulin

We attempt to unveil the fine structure of volatility feedback effects in the context of general quadratic autoregressive (QARCH) models, which assume that today's volatility can be expressed as a general quadratic form of the past daily…

Statistical Finance · Quantitative Finance 2014-05-28 Rémy Chicheportiche , Jean-Philippe Bouchaud

We propose a new model for nonstationary integer-valued time series which is particularly suitable for data with a strong trend. In contrast to popular Poisson-INGARCH models, but in line with classical GARCH models, we propose to pick the…

Statistics Theory · Mathematics 2024-03-28 Anne Leucht , Michael H. Neumann

This paper captures irregularities in financial time series data, particularly stock prices, in the presence of COVID-19 shock. We conjectured that jumps and irregularities are embedded in stock data due to the pandemic shock, which brings…

Computational Engineering, Finance, and Science · Computer Science 2023-11-23 Leonard Mushunje , David Allen , Shelton Peiris

In this paper an autoregressive time series model with conditional heteroscedasticity is considered, where both conditional mean and conditional variance function are modeled nonparametrically. A test for the model assumption of…

Statistics Theory · Mathematics 2016-10-12 Marie Hušková , Natalie Neumeyer , Tobias Niebuhr , Leonie Selk

During the last decades there has been increasing interest in modeling the volatility of financial data. Several parametric models have been proposed to this aim, starting from ARCH, GARCH and their variants, but often it is hard to…

Methodology · Statistics 2016-07-28 Francesco Giordano , Maria Lucia Parrella

Dynamics of complex systems is studied by first considering a chaotic time series generated by Lorenz equations and adding noise to it. The trend (smooth behavior) is separated from fluctuations at different scales using wavelet analysis…

Chaotic Dynamics · Physics 2009-11-11 Dilip P. Ahalpara , Jitendra C. Parikh

A general class of time-varying regression models is considered in this paper. We estimate the regression coefficients by using local linear M-estimation. For these estimators, weak Bahadur representations are obtained and are used to…

Statistics Theory · Mathematics 2021-03-09 Sayar Karmakar , Stefan Richter , Wei Biao Wu

This study delves into the domain of dynamical systems, specifically the forecasting of dynamical time series defined through an evolution function. Traditional approaches in this area predict the future behavior of dynamical systems by…

Methodology · Statistics 2024-02-12 Akifumi Okuno , Yuya Morishita , Yoh-ichi Mototake

In this paper, we develop a hybrid approach to forecasting the volatility and risk of financial instruments by combining common econometric GARCH time series models with deep learning neural networks. For the latter, we employ Gated…

Risk Management · Quantitative Finance 2023-10-03 Jakub Michańków , Łukasz Kwiatkowski , Janusz Morajda

Nonlinear time series analysis is an active field of research that studies the structure of complex signals in order to derive information of the process that generated those series, for understanding, modeling and forecasting purposes. In…

Data Analysis, Statistics and Probability · Physics 2015-05-20 Lucas Lacasa , Raul Toral

Financial networks have become extremely useful in characterizing the structure of complex financial systems. Meanwhile, the time evolution property of the stock markets can be described by temporal networks. We utilize the temporal network…

Statistical Finance · Quantitative Finance 2018-07-04 Longfeng Zhao , Gang-Jin Wang , Mingang Wang , Weiqi Bao , Wei Li , H. Eugene Stanley

This study was conducted to find an appropriate statistical model to forecast the volatilities of PSEi using the model Generalized Autoregressive Conditional Heteroskedasticity (GARCH). Using the R software, the log returns of PSEi is…

Statistical Finance · Quantitative Finance 2019-04-02 Novy Ann M. Etac , Roel F. Ceballos

Time series of counts are frequently analyzed using generalized integer-valued autoregressive models with conditional heteroskedasticity (INGARCH). These models employ response functions to map a vector of past observations and past…

Methodology · Statistics 2023-04-04 Malte Jahn

This paper formulates a model of utility for a continuous time framework that captures the decision-maker's concern with ambiguity about both the drift and volatility of the driving process. At a technical level, the analysis requires a…

General Finance · Quantitative Finance 2013-01-22 Larry Epstein , Shaolin Ji