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Herein, the Hidden Markov Model is expanded to allow for Markov chain observations. In particular, the observations are assumed to be a Markov chain whose one step transition probabilities depend upon the hidden Markov chain. An…

Machine Learning · Statistics 2023-04-18 Michael A. Kouritzin

We consider Markov models of stochastic processes where the next-step conditional distribution is defined by a kernel density estimator (KDE), similar to Markov forecast densities and certain time-series bootstrap schemes. The KDE Markov…

Machine Learning · Computer Science 2018-07-31 Gustav Eje Henter , Arne Leijon , W. Bastiaan Kleijn

The vector autoregression (VAR) has been widely used in system identification, econometrics, natural science, and many other areas. However, when the state dimension becomes large the parameter dimension explodes. So rank reduced modelling…

Methodology · Statistics 2024-10-04 Xinhui Rong , Victor Solo

We introduce a class of regularized M-estimators of multivariate scatter and show, analogous to the popular spatial sign covariance matrix (SSCM), that they possess high breakdown points. We also show that the SSCM can be viewed as an…

Methodology · Statistics 2023-08-01 David E. Tyler , Mengxi Yi , Klaus Nordhausen

This paper presents a novel approach to stochastic volatility (SV) modeling by utilizing nonparametric techniques that enhance our ability to capture the volatility of financial time series data, with a particular emphasis on the…

Computation · Statistics 2025-02-18 Yudong Feng , Ashis Gangopadhyay

This paper explores the mean-variance portfolio selection problem in a multi-period financial market characterized by regime-switching dynamics and uncontrollable liabilities. To address the uncertainty in the decision-making process within…

Optimization and Control · Mathematics 2025-09-04 Zhongqin Gao , Ping Chen , Xun Li , Yan Lv , Wenhao Zhang

This study explores the use of Transformer-based models to predict both covariance and semi-covariance matrices for ETF portfolio optimization. Traditional portfolio optimization techniques often rely on static covariance estimates or…

Portfolio Management · Quantitative Finance 2024-12-02 Jiahao Zhu , Hengzhi Wu

Stochastic variational inference for collapsed models has recently been successfully applied to large scale topic modelling. In this paper, we propose a stochastic collapsed variational inference algorithm for hidden Markov models, in a…

Machine Learning · Statistics 2015-12-08 Pengyu Wang , Phil Blunsom

Many applications require that we learn the parameters of a model from data. EM is a method used to learn the parameters of probabilistic models for which the data for some of the variables in the models is either missing or hidden. There…

Machine Learning · Computer Science 2013-01-30 Luis E. Ortiz , Leslie Pack Kaelbling

Jump Markov linear models consists of a finite number of linear state space models and a discrete variable encoding the jumps (or switches) between the different linear models. Identifying jump Markov linear models makes for a challenging…

Computation · Statistics 2015-02-17 Andreas Svensson , Thomas B. Schön , Fredrik Lindsten

Hidden Markov models (HMMs) are widely used statistical models for modeling sequential data. The parameter estimation for HMMs from time series data is an important learning problem. The predominant methods for parameter estimation are…

Machine Learning · Computer Science 2014-04-30 Carl Mattfeld

We propose a new flexible tensor model for multiple-equation regression that accounts for latent regime changes. The model allows for dynamic coefficients and multi-dimensional covariates that vary across equations. We assume the…

Methodology · Statistics 2024-07-02 Roberto Casarin , Radu Craiu , Qing Wang

The semiparametric accelerated failure time model is not as widely used as the Cox relative risk model mainly due to computational difficulties. Recent developments in least squares estimation and induced smoothing estimating equations…

Methodology · Statistics 2015-06-02 Steven Chiou , Junghi Kim , Jun Yan

While matrix variate regression models have been studied in many existing works, classical statistical and computational methods for the analysis of the regression coefficient estimation are highly affected by high dimensional and noisy…

Machine Learning · Statistics 2022-05-17 Hsin-Hsiung Huang , Feng Yu , Xing Fan , Teng Zhang

High-dimensional time series has diverse applications in econometrics and finance. Recent models for capturing temporal dependence have employed a bilinear representation for matrix time series, or the Tucker-decomposition based…

Methodology · Statistics 2025-06-03 Debika Ghosh , Samrat Roy , Nilanjana Chakraborty

I propose an estimation algorithm for Exponential Random Graph Models (ERGM), a popular statistical network model for estimating the structural parameters of strategic network formation in economics and finance. Existing methods often…

Econometrics · Economics 2025-12-09 Yoon Choi

We present a new mixture model-based discriminant analysis approach for functional data using a specific hidden process regression model. The approach allows for fitting flexible curve-models to each class of complex-shaped curves…

Methodology · Statistics 2013-12-30 Faicel Chamroukhi , Heré Glotin , Céline Rabouy

Stock market forecasting is a classic problem that has been thoroughly investigated using machine learning and artificial neural network based tools and techniques. Interesting aspects of this problem include its time reliance as well as…

Statistical Finance · Quantitative Finance 2023-02-20 Raihan Tanvir , Md Tanvir Rouf Shawon , Md. Golam Rabiul Alam

Industrial processes generate a massive amount of monitoring data that can be exploited to uncover hidden time losses in the system. This can be used to enhance the accuracy of maintenance policies and increase the effectiveness of the…

Applications · Statistics 2025-08-27 Fernando Miguelez , Josu Doncel , Maria Dolores Ugarte

Traditional econometric analyzes represent observations as vectors despite the inherent complexity of empirical data structures. When data are organized along dual classification dimensions, a matrix representation provides a more natural…

Econometrics · Economics 2026-04-02 Emanuele Lopetuso , Massimiliano Caporin