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This paper introduces a novel quantile approach to harness the high-frequency information and improve the daily conditional quantile estimation. Specifically, we model the conditional standard deviation as a realized GARCH model and employ…

Methodology · Statistics 2021-08-05 Donggyu Kim , Minseog Oh , Yazhen Wang

We present a computational method for measuring financial risk by estimating the Value at Risk and Expected Shortfall from financial series. We have made two assumptions: First, that the predictive distributions of the values of an asset…

Risk Management · Quantitative Finance 2011-12-14 I. Garcia , J. Jimenez

Graph-based techniques emerged as a choice to deal with the dimensionality issues in modeling multivariate time series. However, there is yet no complete understanding of how the underlying structure could be exploited to ease this task.…

Signal Processing · Electrical Eng. & Systems 2019-10-02 Elvin Isufi , Andreas Loukas , Nathanael Perraudin , Geert Leus

Structural change detection problems are often encountered in analytics and econometrics, where the performance of a model can be significantly affected by unforeseen changes in the underlying relationships. Although these problems have a…

Methodology · Statistics 2019-05-29 Pekka Malo , Lauri Viitasaari , Olga Gorskikh , Pauliina Ilmonen

In the study of complex physical and biological systems represented by multivariate stochastic processes, an issue of great relevance is the description of the system dynamics spanning multiple temporal scales. While methods to assess the…

Methodology · Statistics 2017-11-01 Luca Faes , Giandomenico Nollo , Sebastiano Stramaglia , Daniele Marinazzo

There exist several methods developed for the canonical change point problem of detecting multiple mean shifts, which search for changes over sections of the data at multiple scales. In such methods, estimation of the noise level is often…

Methodology · Statistics 2022-11-07 Euan T. McGonigle , Haeran Cho

The paper concerns primal and dual representations as well as time consistency of set-valued dynamic risk measures. Set-valued risk measures appear naturally when markets with transaction costs are considered and capital requirements can be…

Risk Management · Quantitative Finance 2014-05-22 Zachary Feinstein , Birgit Rudloff

We address the challenges of modeling high-frequency integer price changes in financial markets using continuous distributions, particularly the Student's t-distribution. We demonstrate that traditional GARCH models, which rely on…

Statistical Finance · Quantitative Finance 2025-10-14 Vladimír Holý

We study the problem of detecting and locating change points in high-dimensional Vector Autoregressive (VAR) models, whose transition matrices exhibit low rank plus sparse structure. We first address the problem of detecting a single change…

Methodology · Statistics 2021-10-01 Peiliang Bai , Abolfazl Safikhani , George Michailidis

In economics, insurance and finance, value at risk (VaR) is a widely used measure of the risk of loss on a specific portfolio of financial assets. For a given portfolio, time horizon, and probability $\alpha$, the $100\alpha\%$ VaR is…

Risk Management · Quantitative Finance 2018-03-15 Raúl Torres , Rosa E. Lillo , Henry Laniado

Autoregressive models capture stochastic processes in which past realizations determine the generative distribution of new data; they arise naturally in a variety of industrial, biomedical, and financial settings. A key challenge when…

Statistics Theory · Mathematics 2020-07-30 Daren Wang , Yi Yu , Alessandro Rinaldo , Rebecca Willett

Assuming stationarity is unrealistic in many time series applications. A more realistic alternative is to allow for piecewise stationarity, where the model is allowed to change at given time points. In this article, the problem of detecting…

Methodology · Statistics 2017-08-10 Abolfazl Safikhani , Ali Shojaie

Multi-output regression models must exploit dependencies between outputs to maximise predictive performance. The application of Gaussian processes (GPs) to this setting typically yields models that are computationally demanding and have…

Machine Learning · Statistics 2019-02-27 James Requeima , Will Tebbutt , Wessel Bruinsma , Richard E. Turner

We study, both analytically and numerically, an ARCH-like, multiscale model of volatility, which assumes that the volatility is governed by the observed past price changes on different time scales. With a power-law distribution of time…

Physics and Society · Physics 2008-12-02 L. Borland , J. -Ph. Bouchaud

This thesis evaluates most of the extreme mixture models and methods that have appended in the literature and implements them in the context of finance and insurance. The paper also reviews and studies extreme value theory, time series,…

General Economics · Economics 2024-07-09 Yujuan Qiu

For data segmentation in high-dimensional linear regression settings, the regression parameters are often assumed to be sparse segment-wise, which enables many existing methods to estimate the parameters locally via $\ell_1$-regularised…

Methodology · Statistics 2026-05-08 Haeran Cho , Tobias Kley , Housen Li

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

Detecting changepoints in datasets with many variates is a data science challenge of increasing importance. Motivated by the problem of detecting changes in the incidence of terrorism from a global terrorism database, we propose a novel…

Methodology · Statistics 2021-03-30 S. O. Tickle , I. A. Eckley , P. Fearnhead

Interest in the study and analysis of dynamic processes in the social, behavioral, and health sciences has burgeoned in recent years due to the increased availability of intensive longitudinal data. However, how best to model and account…

In the regime of change-point detection, a nonparametric framework based on scan statistics utilizing graphs representing similarities among observations is gaining attention due to its flexibility and good performances for high-dimensional…

Methodology · Statistics 2021-09-16 Hoseung Song , Hao Chen