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Related papers: Analytic Moments for GARCH Processes

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We introduce a novel GARCH model that integrates two sources of uncertainty to better capture the rich, multi-component dynamics often observed in the volatility of financial assets. This model provides a quasi closed-form representation of…

Econometrics · Economics 2024-10-21 Luca Vincenzo Ballestra , Enzo D'Innocenzo , Christian Tezza

We introduce a novel method for obtaining a wide variety of moments of any random variable with a well-defined moment-generating function (MGF). We derive new expressions for fractional moments and fractional absolute moments, both central…

Econometrics · Economics 2025-10-21 Peter Reinhard Hansen , Chen Tong

Estimating conditional quantiles of financial time series is essential for risk management and many other applications in finance. It is well-known that financial time series display conditional heteroscedasticity. Among the large number of…

Methodology · Statistics 2016-10-25 Yao Zheng , Qianqian Zhu , Guodong Li , Zhijie Xiao

The Value-at-Risk (VaR) is a widely used instrument in financial risk management. The question of estimating the VaR of loss return distributions at extreme levels is an important question in financial applications, both from operational…

Applications · Statistics 2021-04-21 Hibiki Kaibuchi , Yoshinori Kawasaki , Gilles Stupfler

Events in spatiotemporal systems are ubiquitous, yet modeling their complex distributions remains challenging. Existing point process models often rely on strong structural assumptions and are typically limited to autoregressive,…

Machine Learning · Computer Science 2026-05-05 Keyan Chen , Qiwei Yuan , Zhitong Xu , Bin Shen , Shandian Zhe

The $GARCH$ algorithm is the most renowned generalisation of Engle's original proposal for modelising {\it returns}, the $ARCH$ process. Both cases are characterised by presenting a time dependent and correlated variance or {\it…

Statistical Mechanics · Physics 2009-11-11 Silvio M. Duarte Queiros , Constantino Tsallis

Range-measured return contains more information than the traditional scalar-valued return. In this paper, we propose to model the [low, high] price range as a random interval and suggest an interval-valued GARCH (Int-GARCH) model for the…

Methodology · Statistics 2019-01-11 Yan Sun , Guanghua Lian , Zudi Lu , Jennifer Loveland , Isaac Blackhurst

It is common for long financial time series to exhibit gradual change in the unconditional volatility. We propose a new model that captures this type of nonstationarity in a parsimonious way. The model augments the volatility equation of a…

Econometrics · Economics 2024-10-15 Niklas Ahlgren , Alexander Back , Timo Teräsvirta

Generative moment matching networks (GMMNs) are introduced as dependence models for the joint innovation distribution of multivariate time series (MTS). Following the popular copula-GARCH approach for modeling dependent MTS data, a…

Methodology · Statistics 2021-10-05 Marius Hofert , Avinash Prasad , Mu Zhu

In this paper we construct high moment partial sum processes based on residuals of a GARCH model when the mean is known to be 0. We consider partial sums of $k$th powers of residuals, CUSUM processes and self-normalized partial sum…

Statistics Theory · Mathematics 2007-06-13 Reg Kulperger , Hao Yu

This paper aims to study data driven model selection criteria for a large class of time series, which includes ARMA or AR($\infty$) processes, as well as GARCH or ARCH($\infty$), APARCH and many others processes. We tackled the challenging…

Statistics Theory · Mathematics 2021-01-13 Kare Kamila

The volatility of financial instruments is rarely constant, and usually varies over time. This creates a phenomenon called volatility clustering, where large price movements on one day are followed by similarly large movements on successive…

Statistical Finance · Quantitative Finance 2015-05-08 Gordon J. Ross

We derive generalization error bounds for traditional time-series forecasting models. Our results hold for many standard forecasting tools including autoregressive models, moving average models, and, more generally, linear state-space…

Statistics Theory · Mathematics 2022-03-18 Daniel J. McDonald , Cosma Rohilla Shalizi , Mark Schervish

We discuss the probabilistic properties of the variation based third and fourth moments of financial returns as estimators of the actual moments of the return distributions. The moment variations are defined under non-parametric assumptions…

Statistical Finance · Quantitative Finance 2019-08-15 Kyungsub Lee

One of the most important features of financial time series data is volatility. There are often structural changes in volatility over time, and an accurate estimation of the volatility of financial time series requires careful…

Methodology · Statistics 2022-10-24 Huaiyu Hu , Ashis Gangopadhyay

For many inference problems in statistics and econometrics, the unknown parameter is identified by a set of moment conditions. A generic method of solving moment conditions is the Generalized Method of Moments (GMM). However, classical GMM…

Machine Learning · Statistics 2021-10-18 Dhruv Rohatgi , Vasilis Syrgkanis

Discrete-state stochastic models have become a well-established approach to describe biochemical reaction networks that are influenced by the inherent randomness of cellular events. In the last years severalmethods for accurately…

Molecular Networks · Quantitative Biology 2017-07-03 Alexander Lück , Verena Wolf

This paper develops the limit theory of the GARCH(1,1) process that moderately deviates from IGARCH process towards both stationary and explosive regimes. The GARCH(1,1) process is defined by equations $u_t = \sigma_t \varepsilon_t$,…

Statistics Theory · Mathematics 2021-07-22 Yubo Tao

Spectral properties of Gram matrices are central to high dimensional asymptotic analyses of statistical estimators in regression and covariance estimation. These properties, in turn, depend critically on the extreme singular values and…

Statistics Theory · Mathematics 2026-03-03 Partha Sarkar , Kshitij Khare , Sanvesh Srivastava

Scattering moments provide nonparametric models of random processes with stationary increments. They are expected values of random variables computed with a nonexpansive operator, obtained by iteratively applying wavelet transforms and…

Methodology · Statistics 2015-03-17 Joan Bruna , Stéphane Mallat , Emmanuel Bacry , Jean-François Muzy