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We consider a continuous-time stochastic volatility model. The model contains a stationary volatility process, the multivariate density of the finite dimensional distributions of which we aim to estimate. We assume that we observe the…

Statistics Theory · Mathematics 2014-07-08 Bert van Es , Peter Spreij

We provide a nonparametric method for the computation of instantaneous multivariate volatility for continuous semi-martingales, which is based on Fourier analysis. The co-volatility is reconstructed as a stochastic function of time by…

Statistics Theory · Mathematics 2009-08-14 Paul Malliavin , Maria Elvira Mancino

We address the problem of parameter estimation for diffusion driven stochastic volatility models through Markov chain Monte Carlo (MCMC). To avoid degeneracy issues we introduce an innovative reparametrisation defined through…

Methodology · Statistics 2008-12-02 Konstantinos Kalogeropoulos , Gareth O. Roberts , Petros Dellaportas

Probabilistic modeling provides the capability to represent and manipulate uncertainty in data, models, predictions and decisions. We are concerned with the problem of learning probabilistic models of dynamical systems from measured data.…

Computation · Statistics 2018-03-14 Thomas B. Schön , Andreas Svensson , Lawrence Murray , Fredrik Lindsten

Process monitoring and control requires detection of structural changes in a data stream in real time. This article introduces an efficient sequential Monte Carlo algorithm designed for learning unknown changepoints in continuous time. The…

Applications · Statistics 2015-09-29 Melissa J. M. Turcotte , Nicholas A. Heard

We study a market model in which the volatility of the stock may jump at a random time from a fixed value to another fixed value. This model was already described in the literature. We present a new approach to the problem, based on partial…

Statistical Mechanics · Physics 2008-12-02 Miquel Montero

We construct fractionally integrated continuous-time GARCH models, which capture the observed long range dependence of squared volatility in high-frequency data. Since the usual Molchan-Golosov and Mandelbrot-van-Ness fractional kernels…

Statistics Theory · Mathematics 2018-01-01 Stephan Haug , Claudia Klüppelberg , German Straub

Modern macroeconometrics often relies on time series models for which it is time-consuming to evaluate the likelihood function. We demonstrate how Bayesian computations for such models can be drastically accelerated by reweighting and…

Econometrics · Economics 2024-09-10 Marko Mlikota , Frank Schorfheide

The Stochastic Volatility (SV) model and its variants are widely used in the financial sector while recurrent neural network (RNN) models are successfully used in many large-scale industrial applications of Deep Learning. Our article…

Econometrics · Economics 2022-01-25 Trong-Nghia Nguyen , Minh-Ngoc Tran , David Gunawan , R. Kohn

A new partial functional linear regression model for panel data with time varying parameters is introduced. The parameter vector of the multivariate model component is allowed to be completely time varying while the function-valued…

Methodology · Statistics 2018-07-18 Dominik Liebl , Fabian Walders

Many random processes can be simulated as the output of a deterministic model accepting random inputs. Such a model usually describes a complex mathematical or physical stochastic system and the randomness is introduced in the input…

Machine Learning · Statistics 2012-11-21 A. Gokcen Mahmutoglu , Alper T. Erdogan , Alper Demir

In this paper, we show how to estimate the asymptotic (conditional) covariance matrix, which appears in central limit theorems in high-frequency estimation of asset return volatility. We provide a recipe for the estimation of this matrix by…

Econometrics · Economics 2026-01-26 Kim Christensen , Mark Podolskij , Nopporn Thamrongrat , Bezirgen Veliyev

Volatility for financial assets returns can be used to gauge the risk for financial market. We propose a deep stochastic volatility model (DSVM) based on the framework of deep latent variable models. It uses flexible deep learning models to…

Machine Learning · Computer Science 2021-02-26 Xiuqin Xu , Ying Chen

Sequential Monte Carlo methods, also known as particle methods, are a widely used set of computational tools for inference in non-linear non-Gaussian state-space models. In many applications it may be necessary to compute the sensitivity,…

Statistics Theory · Mathematics 2011-06-14 Pierre Del Moral , Arnaud Doucet , Sumeetpal Singh

The linear fractional stable motion generalizes two prominent classes of stochastic processes, namely stable L\'evy processes, and fractional Brownian motion. For this reason it may be regarded as a basic building block for continuous time…

Statistics Theory · Mathematics 2022-08-17 Fabian Mies , Mark Podolskij

We develop and describe online algorithms for performing online semiparametric regression analyses. Earlier work on this topic is in Luts, Broderick & Wand (J. Comput. Graph. Statist., 2014) where online mean field variational Bayes was…

Methodology · Statistics 2024-08-28 Marianne Menictas , Chris J. Oates , Matt P. Wand

A change in the number of motor units that operate a particular muscle is an important indicator for the progress of a neuromuscular disease and the efficacy of a therapy. Inference for realistic statistical models of the typical data…

Methodology · Statistics 2018-04-12 Simon Taylor , Chris Sherlock , Gareth Ridall , Paul Fearnhead

In this paper we propose a new stochastic model based on a generalization of semi-Markov chains to study the high frequency price dynamics of traded stocks. We assume that the financial returns are described by a weighted indexed…

Statistical Finance · Quantitative Finance 2015-06-05 Guglielmo D'Amico , Filippo Petroni

Identification of nonlinear systems is a challenging problem. Physical knowledge of the system can be used in the identification process to significantly improve the predictive performance by restricting the space of possible mappings from…

Computation · Statistics 2022-10-27 Anna Wigren , Johan Wågberg , Fredrik Lindsten , Adrian Wills , Thomas B. Schön

The Heston stochastic volatility model is a standard model for valuing financial derivatives, since it can be calibrated using semi-analytical formulas and captures the most basic structure of the market for financial derivatives with…

Pricing of Securities · Quantitative Finance 2019-01-29 Daniel Guterding , Wolfram Boenkost