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Volatility is a key variable in option pricing, trading and hedging strategies. The purpose of this paper is to improve the accuracy of forecasting implied volatility using an extension of genetic programming (GP) by means of dynamic…

General Finance · Quantitative Finance 2020-07-15 Sana Ben Hamida , Wafa Abdelmalek , Fathi Abid

In this paper, we propose a novel model to analyze serially correlated two-dimensional functional data observed sparsely and irregularly on a domain which may not be a rectangle. Our approach employs a mixed effects model that specifies the…

Methodology · Statistics 2024-04-02 Shirun Shen , Huiya Zhou , Kejun He , Lan Zhou

Portfolio construction traditionally relies on separately estimating expected returns and covariance matrices using historical statistics, often leading to suboptimal allocation under time-varying market conditions. This paper proposes a…

Portfolio Management · Quantitative Finance 2026-03-23 Keonvin Park

To date, developing a good model for early intensive care unit (ICU) mortality prediction is still challenging. This paper presents a patient based predictive modeling framework (PPMF) to improve the performance of ICU mortality prediction…

Machine Learning · Computer Science 2017-05-02 Mohammad Amin Morid , Olivia R. Liu Sheng , Samir Abdelrahman

Functional data is a powerful tool for capturing and analyzing complex patterns and relationships in a variety of fields, allowing for more precise modeling, visualization, and decision-making. For example, in healthcare, functional data…

Methodology · Statistics 2023-04-26 Xiyuan Gao , Jiayi Wang , Guanyu Hu , Jianguo Sun

We propose a nonparametric method to explicitly model and represent the derivatives of smooth underlying trajectories for longitudinal data. This representation is based on a direct Karhunen--Lo\`eve expansion of the unobserved derivatives…

Methodology · Statistics 2017-07-17 Xiongtao Dai , Hans-Georg Müller , Wenwen Tao

Repeated longitudinal measurements are commonly used to model long-term disease progression, and timing and number of assessments per patient may vary, leading to irregularly spaced and sparse data. Longitudinal trajectories may exhibit…

Principal component regression (PCR) is a useful method for regularizing linear regression. Although conceptually simple, straightforward implementations of PCR have high computational costs and so are inappropriate when learning with large…

Numerical Analysis · Mathematics 2019-03-08 Liron Mor-Yosef , Haim Avron

Dimension reduction techniques for multivariate time series decompose the observed series into a few useful independent/orthogonal univariate components. We develop a spectral domain method for multivariate second-order stationary time…

Methodology · Statistics 2020-10-12 Raanju R. Sundararajan

This paper explores the dependence modeling of financial assets in a dynamic way and its critical role in measuring risk. Two new methods, called Accelerated Moving Window method and Bottom-up method are proposed to detect the change of…

Risk Management · Quantitative Finance 2019-08-15 Yali Dou , Haiyan Liu , Georgios Aivaliotis

Given a sequence of sets, where each set contains an arbitrary number of elements, the problem of temporal sets prediction aims to predict the elements in the subsequent set. In practice, temporal sets prediction is much more complex than…

Machine Learning · Computer Science 2020-07-09 Le Yu , Leilei Sun , Bowen Du , Chuanren Liu , Hui Xiong , Weifeng Lv

We combine high-dimensional factor models with fractional integration methods and derive models where nonstationary, potentially cointegrated data of different persistence is modelled as a function of common fractionally integrated factors.…

Econometrics · Economics 2020-05-12 Tobias Hartl

Functional logistic regression is a popular model to capture a linear relationship between binary response and functional predictor variables. However, many methods used for parameter estimation in functional logistic regression are…

Methodology · Statistics 2025-10-15 Berkay Akturk , Ufuk Beyaztas , Han Lin Shang

This paper proposes a novel dynamic forecasting method using a new supervised Principal Component Analysis (PCA) when a large number of predictors are available. The new supervised PCA provides an effective way to bridge the gap between…

Econometrics · Economics 2024-06-14 Zhaoxing Gao , Ruey S. Tsay

Principal Components Analysis is a widely used technique for dimension reduction and characterization of variability in multivariate populations. Our interest lies in studying when and why the rotation to principal components can be used…

Machine Learning · Statistics 2014-10-01 Daniel A Díaz-Pachón , Jean-Eudes Dazard , J. Sunil Rao

Financial time series often exhibit skewness and heavy tails, making it essential to use models that incorporate these characteristics to ensure greater reliability in the results. Furthermore, allowing temporal variation in the skewness…

Statistical Finance · Quantitative Finance 2025-08-15 Bruno E. Holtz , Ricardo S. Ehlers , Adriano K. Suzuki , Francisco Louzada

Principal component analysis (PCA) is a most frequently used statistical tool in almost all branches of data science. However, like many other statistical tools, there is sometimes the risk of misuse or even abuse. In this paper, we…

Methodology · Statistics 2021-08-12 Xinyu Zhang , Howell Tong

This paper addresses the challenges of fault prediction and delayed response in distributed systems by proposing an intelligent prediction method based on temporal feature learning. The method takes multi-dimensional performance metric…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-05-28 Yang Wang , Wenxuan Zhu , Xuehui Quan , Heyi Wang , Chang Liu , Qiyuan Wu

The article is focused on studying how to predict the failure times of coherent systems from the early failure times of their components. Both the cases of independent and dependent components are considered by assuming that they are…

Applications · Statistics 2024-09-30 Jorge Navarro , Antonio Arriaza , Alfonso Suárez-Llorens

We study principal components regression (PCR) in an asymptotic high-dimensional regression setting, where the number of data points is proportional to the dimension. We derive exact limiting formulas for the estimation and prediction…

Statistics Theory · Mathematics 2025-09-18 Alden Green , Elad Romanov
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