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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

We introduce a heterogeneous spatiotemporal GARCH model for geostatistical data or processes on networks, e.g., for modelling and predicting financial return volatility across firms in a latent spatial framework. The model combines…

Statistical Finance · Quantitative Finance 2025-08-29 Atika Aouri , Philipp Otto

Geo-referenced data are characterized by an inherent spatial dependence due to the geographical proximity. In this paper, we introduce a dynamic spatiotemporal autoregressive conditional heteroscedasticity (ARCH) process to describe the…

Methodology · Statistics 2023-10-24 Philipp Otto , Osman Doğan , Süleyman Taşpınar

This paper introduces a multivariate spatiotemporal autoregressive conditional heteroscedasticity (ARCH) model based on a vec-representation. The model includes instantaneous spatial autoregressive spill-over effects in the conditional…

Methodology · Statistics 2022-04-27 Philipp Otto

This paper introduces a spatiotemporal exponential generalised autoregressive conditional heteroscedasticity (spatiotemporal E-GARCH) model, extending traditional spatiotemporal GARCH models by incorporating asymmetric volatility…

Applications · Statistics 2025-11-10 Ariane Nidelle Meli Chrisko , Philipp Otto , Wolfgang Schmid

In this paper, we introduce a new spatial model that incorporates heteroscedastic variance depending on neighboring locations. The proposed process is regarded as the spatial equivalent to the temporal autoregressive conditional…

Statistics Theory · Mathematics 2020-10-20 Philipp Otto , Wolfgang Schmid , Robert Garthoff

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

Heteroskedasticity is a common feature of financial time series and is commonly addressed in the model building process through the use of ARCH and GARCH processes. More recently multivariate variants of these processes have been in the…

Methodology · Statistics 2015-12-18 Alexander Aue , Lajos Horvath , Daniel Pellatt

We propose Neural GARCH, a class of methods to model conditional heteroskedasticity in financial time series. Neural GARCH is a neural network adaptation of the GARCH 1,1 model in the univariate case, and the diagonal BEKK 1,1 model in the…

Machine Learning · Computer Science 2022-02-24 Zexuan Yin , Paolo Barucca

Various spatiotemporal and network GARCH models have recently been proposed to capture volatility interactions, such as the transmission of market risk across financial networks. These approaches rely heavily on the specification of the…

Applications · Statistics 2026-03-03 Ariane N. Meli Chrisko , Jessie Li , Philipp Otto , Wolfgang Schmid

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…

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

We propose a new class of financial volatility models, called the REcurrent Conditional Heteroskedastic (RECH) models, to improve both in-sample analysis and out-ofsample forecasting of the traditional conditional heteroskedastic models. In…

Econometrics · Economics 2022-01-25 T. -N. Nguyen , M. -N. Tran , R. Kohn

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

In this study, we develop a unified volatility modeling framework that embeds GARCH dynamics directly within recurrent neural networks. We propose two interpretable hybrid architectures, GARCH-GRU and GARCH-LSTM, that integrate the…

Statistical Finance · Quantitative Finance 2025-11-25 Jingyi Wei , Steve Yang , Zhenyu Cui

Generalized autoregressive conditional heteroscedasticity (GARCH) models have long been considered as one of the most successful families of approaches for volatility modeling in financial return series. In this paper, we propose an…

Machine Learning · Computer Science 2013-01-29 Emmanouil A. Platanios , Sotirios P. Chatzis

Volatility clustering is an important characteristic that has a significant effect on the behavior of stock markets. However, designing robust models for accurate prediction of future volatilities of stock prices is a very challenging…

Computational Finance · Quantitative Finance 2021-10-11 Jaydip Sen , Sidra Mehtab , Abhishek Dutta

This paper proposes a novel conditional heteroscedastic time series model by applying the framework of quantile regression processes to the ARCH(\infty) form of the GARCH model. This model can provide varying structures for conditional…

Methodology · Statistics 2023-11-14 Qianqian Zhu , Songhua Tan , Yao Zheng , Guodong Li

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

This paper advances the local projections (LP) method by addressing its inefficiency in high-frequency economic and financial data with volatility clustering. We incorporate a generalized autoregressive conditional heteroskedasticity…

Econometrics · Economics 2025-03-05 Chew Lian Chua , David Gunawan , Sandy Suardi
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