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We show that maximum entropy (maxent) models can be modeled with certain kinds of HMMs, allowing us to construct maxent models with hidden variables, hidden state sequences, or other characteristics. The models can be trained using the…

Artificial Intelligence · Computer Science 2013-01-07 Joshua Goodman

Dynamical systems comprising of multiple components that can be partitioned into distinct blocks originate in many scientific areas. A pertinent example is the interactions between financial assets and selected macroeconomic indicators,…

Methodology · Statistics 2017-08-22 Jiahe Lin , George Michailidis

This work aims at providing a new model for time series classification based on learning from just one example. We assume that time series can be well characterized as a parametric random process, a sort of Hidden semi-Markov Model…

Machine Learning · Statistics 2022-11-18 Adrián Pérez Herrero , Paulo Félix Lamas , Jesús María Rodríguez Presedo

Hidden Markov models (HMMs) and their extensions have proven to be powerful tools for classification of observations that stem from systems with temporal dependence as they take into account that observations close in time are likely…

Applications · Statistics 2021-11-22 Sofia Ruiz-Suarez , Vianey Leos-Barajas , Juan Manuel Morales

We study the high frequency price dynamics of traded stocks by a model of returns using a semi-Markov approach. More precisely we assume that the intraday return are described by a discrete time homogeneous semi-Markov process and the…

Statistical Finance · Quantitative Finance 2012-08-24 Guglielmo D'Amico , Filippo Petroni

This work attempts to approximate a linear Gaussian system with a finite-state hidden Markov model (HMM), which is found useful in solving sophisticated event-based state estimation problems. An indirect modeling approach is developed,…

Systems and Control · Electrical Eng. & Systems 2020-07-10 Kaikai Zheng , Dawei Shi , Ling Shi

A new approach for functional data description is proposed in this paper. It consists of a regression model with a discrete hidden logistic process which is adapted for modeling curves with abrupt or smooth regime changes. The model…

Methodology · Statistics 2013-12-30 Faicel Chamroukhi , Allou Samé , Gérard Govaert , Patrice Aknin

Inferring time-varying networks is important to understand the development and evolution of interactions over time. However, the vast majority of currently used models assume direct measurements of node states, which are often difficult to…

Applications · Statistics 2014-05-06 Xin Wang , Ke Yuan , Christoph Hellmayr , Wei Liu , Florian Markowetz

The EM procedure is a principal tool for parameter estimation in the hidden Markov models. However, applications replace EM by Viterbi extraction, or training (VT). VT is computationally less intensive, more stable and has more of an…

Computation · Statistics 2008-12-18 Jüri Lember , Alexey Koloydenko

Midterm stock price prediction is crucial for value investments in the stock market. However, most deep learning models are essentially short-term and applying them to midterm predictions encounters large cumulative errors because they…

Statistical Finance · Quantitative Finance 2019-08-06 Xinyi Li , Yinchuan Li , Xiao-Yang Liu , Christina Dan Wang

We introduce a new multivariate circular linear distribution suitable for modeling direction and speed in (multiple) animal movement data. To properly account for specific data features, such as heterogeneity and time dependence, a hidden…

Applications · Statistics 2016-06-28 Gianluca Mastrantonio

This research focuses on the algorithms and approaches for learning Hidden Markov Models (HMMs) and compares HMM learning methods and algorithms. HMM is a statistical Markov model in which the system being modeled is assumed to be a Markov…

Machine Learning · Computer Science 2021-02-16 Taha Mansouri , Mohamadreza Sadeghimoghadam , Iman Ghasemian Sahebi

We develop a family of accelerated stochastic algorithms that minimize sums of convex functions. Our algorithms improve upon the fastest running time for empirical risk minimization (ERM), and in particular linear least-squares regression,…

Machine Learning · Statistics 2015-06-25 Roy Frostig , Rong Ge , Sham M. Kakade , Aaron Sidford

Finite mixture models have been widely used for the modelling and analysis of data from heterogeneous populations. Maximum likelihood estimation of the parameters is typically carried out via the Expectation-Maximization (EM) algorithm. The…

Computation · Statistics 2016-06-08 Sharon X Lee , Kaleb L Lee , Geoffrey J McLachlan

In many applications, data are observed as matrices with temporal dependence. Matrix-variate time series modeling is a new branch of econometrics. Although stylized facts in several fields, the existing models do not account for regime…

Methodology · Statistics 2022-12-19 Andrea Bucci

We study a an optimal high frequency trading problem within a market microstructure model designed to be a good compromise between accuracy and tractability. The stock price is driven by a Markov Renewal Process (MRP), while market orders…

Trading and Market Microstructure · Quantitative Finance 2015-01-06 Pietro Fodra , Huyên Pham

We propose convenient inferential methods for potentially nonstationary multivariate unobserved components models with fractional integration and cointegration. Based on finite-order ARMA approximations in the state space representation,…

Econometrics · Economics 2020-11-10 Tobias Hartl , Roland Weigand

A Hidden Markov Model for intraday momentum trading is presented which specifies a latent momentum state responsible for generating the observed securities' noisy returns. Existing momentum trading models suffer from time-lagging caused by…

Trading and Market Microstructure · Quantitative Finance 2020-06-22 Hugh Christensen , Simon Godsill , Richard E Turner

There are many time series in the literature with high dimension yet limited sample sizes, such as macroeconomic variables, and it is almost impossible to obtain efficient estimation and accurate prediction by using the corresponding…

Methodology · Statistics 2025-10-30 Yuchang Lin , Qianqian Zhu , Guodong Li

In this paper we propose univariate volatility models for irregularly spaced financial time series by modifying the regularly spaced stochastic volatility models. We also extend this approach to propose multivariate stochastic volatility…

Applications · Statistics 2023-05-25 Chiranjit Dutta , Nalini Ravishanker , Sumanta Basu