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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

This work is devoted to the study of modeling geophysical and financial time series. A class of volatility models with time-varying parameters is presented to forecast the volatility of time series in a stationary environment. The modeling…

INteger Auto-Regressive (INAR) processes are usually defined by specifying the innovations and the operator, which often leads to difficulties in deriving marginal properties of the process. In many practical situations, a major modeling…

Methodology · Statistics 2020-04-21 Matheus B. Guerrero , Wagner Barreto-Souza , Hernando Ombao

Matrix-variate time series data are largely available in applications. However, no attempt has been made to study their conditional heteroskedasticity that is often observed in economic and financial data. To address this gap, we propose a…

Methodology · Statistics 2023-06-09 Cheng Yu , Dong Li , Feiyu Jiang , Ke Zhu

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

In this paper we use Gaussian Process (GP) regression to propose a novel approach for predicting volatility of financial returns by forecasting the envelopes of the time series. We provide a direct comparison of their performance to…

Machine Learning · Statistics 2017-05-03 Syed Ali Asad Rizvi , Stephen J. Roberts , Michael A. Osborne , Favour Nyikosa

Volatility asymmetry is a hot topic in high-frequency financial market. In this paper, we propose a new econometric model, which could describe volatility asymmetry based on high-frequency historical data and low-frequency historical data.…

Methodology · Statistics 2021-01-15 Huiling Yuan , Yong Zhou , Lu Xu , Yun Lei Sun , Xiang Yu Cui

This paper introduces a Threshold Asymmetric Conditional Autoregressive Range (TACARR) formulation for modeling the daily price ranges of financial assets. It is assumed that the process generating the conditional expected ranges at each…

Econometrics · Economics 2022-03-18 Isuru Ratnayake , V. A. Samaranayake

In time-series analyses, particularly for finance, generalized autoregressive conditional heteroscedasticity (GARCH) models are widely applied statistical tools for modelling volatility clusters (i.e., periods of increased or decreased…

Methodology · Statistics 2023-10-24 Philipp Otto , Wolfgang Schmid

This paper introduces a novel Ito diffusion process to model high-frequency financial data, which can accommodate low-frequency volatility dynamics by embedding the discrete-time non-linear exponential GARCH structure with log-integrated…

Econometrics · Economics 2021-11-09 Donggyu Kim

This paper offers a new method for estimation and forecasting of the volatility of financial time series when the stationarity assumption is violated. Our general local parametric approach particularly applies to general varying-coefficient…

Methodology · Statistics 2009-03-27 P. Čížek , W. Härdle , V. Spokoiny

We propose a general class of INteger-valued Generalized AutoRegressive Conditionally Heteroscedastic (INGARCH) processes by allowing time-varying mean and dispersion parameters, which we call time-varying dispersion INGARCH (tv-DINGARCH)…

Models for financial risk often assume that underlying asset returns are stationary. However, there is strong evidence that multivariate financial time series entail changes not only in their within-series dependence structure, but also in…

Methodology · Statistics 2021-03-03 Haeran Cho , Karolos Korkas

Christoffersen, Jacobs, Ornthanalai, and Wang (2008) (CJOW) proposed an improved Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model for valuing European options, where the return volatility is comprised of two distinct…

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

In this paper, we analyze the time-series of minute price returns on the Bitcoin market through the statistical models of generalized autoregressive conditional heteroskedasticity (GARCH) family. Several mathematical models have been…

Statistical Finance · Quantitative Finance 2021-02-01 Irena Barjašić , Nino Antulov-Fantulin

It is now widely accepted that volatility models have to incorporate the so-called leverage effect in order to to model the dynamics of daily financial returns.We suggest a new class of multivariate power transformed asymmetric models. It…

Statistics Theory · Mathematics 2019-10-17 Yacouba Boubacar Maïnassara , Othman Kadmiri , Bruno Saussereau

Realised volatility has become increasingly prominent in volatility forecasting due to its ability to capture intraday price fluctuations. With a growing variety of realised volatility estimators, each with unique advantages and…

Risk Management · Quantitative Finance 2024-11-27 Qianli Zhao , Chao Wang , Richard Gerlach , Giuseppe Storti , Lingxiang Zhang

This paper introduces one new multivariate volatility model that can accommodate an appropriately defined network structure based on low-frequency and high-frequency data. The model reduces the number of unknown parameters and the…

Statistical Finance · Quantitative Finance 2022-04-28 Huiling Yuan , Guodong Li , Junhui Wang

The advantages of sequential Monte Carlo (SMC) are exploited to develop parameter estimation and model selection methods for GARCH (Generalized AutoRegressive Conditional Heteroskedasticity) style models. It provides an alternative method…

Applications · Statistics 2020-03-06 Dan Li , Adam Clements , Christopher Drovandi

This paper proposes a spatial threshold GARCH-type model for dynamic spatio-temporal integer-valued data with network structure. The proposed model can simplify the parameterization by using network structure in data, and can capture the…

Methodology · Statistics 2024-09-19 Yue Pan , Jiazhu Pan