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Bitcoin price forecasting is characterized by extreme volatility and non-stationarity, often defying traditional univariate time-series models over long horizons. This paper addresses a critical gap by integrating Global M2 Liquidity,…

Machine Learning · Computer Science 2026-01-13 Sravan Karthick T

Bitcoin is one of the cryptocurrencies that is gaining more popularity in recent years. Previous studies have shown that closing price alone is not enough to forecast stock market series. We introduce a new set of time series and…

Machine Learning · Computer Science 2025-04-28 Stefano Sossi-Rojas , Gissel Velarde , Damian Zieba

Following Boukai (2021) we present the Generalized Gamma (GG) distribution as a possible RND for modeling European options prices under Heston's (1993) stochastic volatility (SV) model. This distribution is seen as especially useful in…

Computational Finance · Quantitative Finance 2021-08-24 Ben Boukai

We present positive evidence of price stability of cryptocurrencies as a medium of exchange. For the sample years from 2016 to 2020, the prices of major cryptocurrencies are found to be stable, relative to major financial assets.…

General Economics · Economics 2021-12-14 Tatsuru Kikuchi , Toranosuke Onishi , Kenichi Ueda

Stablecoins, digital assets pegged to a specific currency or commodity value, are heavily involved in transactions of major cryptocurrencies. The effects of deviations from their desired fixed values (depeggings) on the cryptocurrencies for…

Statistical Finance · Quantitative Finance 2022-05-16 Connor Oxenhorn

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

Value-at-risk (VaR) and expected shortfall (ES) are two commonly utilized metrics for quantifying financial risk. In this study, we review the widely employed Generalized Autoregressive Conditional Heteroskedasticity (GARCH) models. These…

Computation · Statistics 2024-05-14 Kanon Kamronnaher , Andrew Bellucco , Whitney K. Huang , Colin M. Gallagher

Markov Chain Monte Carlo is repeatedly used to analyze the properties of intractable distributions in a convenient way. In this paper we derive conditions for geometric ergodicity of a general class of nonparametric stochastic volatility…

Statistical Finance · Quantitative Finance 2016-12-09 Jerzy P. Rydlewski , Małgorzata Snarska

The cryptocurrency market is highly volatile compared to traditional financial markets. Hence, forecasting its volatility is crucial for risk management. In this paper, we investigate CryptoQuant data (e.g. on-chain analytics, exchange and…

Trading and Market Microstructure · Quantitative Finance 2024-06-13 Dorien Herremans , Kah Wee Low

This study introduces the concept of the forking effect in the cryptocurrency market,specifically focusing on the impact of forking events on bitcoin, also called parent coin.We use a modified exponential GARCH model to examine the…

Cryptography and Security · Computer Science 2023-07-24 Florentina Şoiman , Mathis Mourey , Jean-Guillaume Dumas , Sonia Jimenez-Garces

This paper introduces new methods to study behaviours among the 52 largest cryptocurrencies between 01-01-2019 and 30-06-2021. First, we explore evolutionary correlation behaviours and apply a recently proposed turning point algorithm to…

Statistical Finance · Quantitative Finance 2022-11-15 Nick James , Max Menzies

This paper tests whether graph neural networks improve realized volatility forecasts and whether those forecasts improve portfolio performance. Using weekly realized volatility for 465 S&P 500 equities from 2015-2025, Heterogeneous…

Portfolio Management · Quantitative Finance 2026-05-21 Rylan Wade

Although Bitcoin has long been dominant in the crypto scene, it is certainly not alone. Ether is another cryptocurrency related project that has attracted an intensive attention because of its additional features. This study seeks to test…

Portfolio Management · Quantitative Finance 2017-07-26 Jamal Bouoiyour , Refk Selmi

Conventional financial models fail to explain the economic and monetary properties of cryptocurrencies due to the latter's dual nature: their usage as financial assets on the one side and their tight connection to the underlying blockchain…

Econometrics · Economics 2021-07-20 Constandina Koki , Stefanos Leonardos , Georgios Piliouras

Forecasting cryptocurrency prices is hindered by extreme volatility and a methodological dilemma between information-scarce univariate models and noise-prone full-multivariate models. This paper investigates a partial-multivariate approach…

Statistical Finance · Quantitative Finance 2025-12-05 Andrzej Tokajuk , Jarosław A. Chudziak

While transactions with cryptocurrencies such as Ethereum are becoming more prevalent, fraud and other criminal transactions are not uncommon. Graph analysis algorithms and machine learning techniques detect suspicious transactions that…

Machine Learning · Computer Science 2022-07-05 Hiroki Kanezashi , Toyotaro Suzumura , Xin Liu , Takahiro Hirofuchi

We address the challenges of modeling high-frequency integer price changes in financial markets using continuous distributions, particularly the Student's t-distribution. We demonstrate that traditional GARCH models, which rely on…

Statistical Finance · Quantitative Finance 2025-10-14 Vladimír Holý

This paper introduces new methods for analysing the extreme and erratic behaviour of time series to evaluate the impact of COVID-19 on cryptocurrency market dynamics. Across 51 cryptocurrencies, we examine extreme behaviour through a study…

Mathematical Finance · Quantitative Finance 2020-12-01 Nick James , Max Menzies , Jennifer Chan

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

The fundamental theorem behind financial markets is that stock prices are intrinsically complex and stochastic. One of the complexities is the volatility associated with stock prices. Volatility is a tendency for prices to change…

Statistical Finance · Quantitative Finance 2023-11-21 Leonard Mushunje , Maxwell Mashasha , Edina Chandiwana
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