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A novel approach for dynamic modeling and forecasting of realized covariance matrices is proposed. Realized variances and realized correlation matrices are jointly estimated. The one-to-one relationship between a positive definite…

Methodology · Statistics 2019-02-18 Nicole Barthel , Claudia Czado , Yarema Okhrin

We propose a model for unbalanced longitudinal data, where the univariate margins can be selected arbitrarily and the dependence structure is described with the help of a D-vine copula. We show that our approach is an extremely flexible…

Methodology · Statistics 2017-05-18 Matthias Killiches , Claudia Czado

Finding parametric models that accurately describe the dependence structure of observed data is a central task in the analysis of time series. Classical frequency domain methods provide a popular set of tools for fitting and diagnostics of…

Methodology · Statistics 2019-01-18 Stefan Birr , Tobias Kley , Stanislav Volgushev

This article is devoted to some time-changed stochastic models based on multivariate stable processes. The considered models have several advantages in comparison with classical time-changed Brownian motions - for instance, it turns out…

Probability · Mathematics 2018-06-12 V. Panov , E. Samarin

In this article we review existing literature on dynamic copulas and then propose an n-copula which varies in time and space. Our approach makes use of stochastic differential equations, and gives rise to a dynamic copula which is able to…

Statistics Theory · Mathematics 2008-12-18 Glenis Crane

This paper introduces a new class of observation driven dynamic models. The time evolving parameters are driven by innovations of copula form. The resulting models can be made strictly stationary and the innovation term is typically chosen…

Methodology · Statistics 2021-04-05 Landan Zhang , Michael K. Pitt , Robert Kohn

In order to calculate the unobserved volatility in conditional heteroscedastic time series models, the natural recursive approximation is very often used. Following \cite{StraumannMikosch2006}, we will call the model \emph{invertible} if…

Statistics Theory · Mathematics 2012-12-18 Alexey Sorokin

This study suggests a coupling uncertainty analysis method to investigate the stiffness characteristics of variable stiffness (VS) composite. The D-vine copula function is used to address the coupling of random variables. To identify the…

Computational Engineering, Finance, and Science · Computer Science 2018-04-23 Qidi Li , Hu Wang , Yang Zeng , Zhiwei Lv

We introduce time-inhomogeneous stochastic volatility models, in which the volatility is described by a nonnegative function of a Volterra type continuous Gaussian process that may have very rough sample paths. The main results obtained in…

Probability · Mathematics 2021-01-01 Archil Gulisashvili

We introduce a general approach for modeling the dynamic of multivariate time series when the data are of mixed type (binary/count/continuous). Our method is quite flexible and conditionally on past values, each coordinate at time $t$ can…

Methodology · Statistics 2021-04-05 Zinsou Max Debaly , Lionel Truquet

Vine copulas are a flexible tool for multivariate non-Gaussian distributions. For data from an observational study where the explanatory variables and response variables are measured together, a proposed vine copula regression method uses…

Methodology · Statistics 2019-10-30 Bo Chang , Harry Joe

The heterogeneous autoregressive (HAR) model is revised by modeling the joint distribution of the four partial-volatility terms therein involved. Namely, today's, yesterday's, last week's and last month's volatility components. The joint…

Econometrics · Economics 2019-07-22 Martin Magris

A multivariate risk analysis for VaR and CVaR using different copula families is performed on historical financial time series fitted with DCC-GARCH models. A theoretical background is provided alongside a comparison of goodness-of-fit…

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

This paper presents a novel approach to stochastic volatility (SV) modeling by utilizing nonparametric techniques that enhance our ability to capture the volatility of financial time series data, with a particular emphasis on the…

Computation · Statistics 2025-02-18 Yudong Feng , Ashis Gangopadhyay

We propose a new variational Bayes estimator for high-dimensional copulas with discrete, or a combination of discrete and continuous, margins. The method is based on a variational approximation to a tractable augmented posterior, and is…

Methodology · Statistics 2018-07-23 Ruben Loaiza-Maya , Michael Stanley Smith

Quantile regression is a field with steadily growing importance in statistical modeling. It is a complementary method to linear regression, since computing a range of conditional quantile functions provides a more accurate modelling of the…

Methodology · Statistics 2022-05-09 Marija Tepegjozova , Jing Zhou , Gerda Claeskens , Claudia Czado

Starting from inhomogeneous time scaling and linear decorrelation between successive price returns, Baldovin and Stella recently proposed a way to build a model describing the time evolution of a financial index. We first make it fully…

Data Analysis, Statistics and Probability · Physics 2009-09-29 Damien Challet , Pier Paolo Peirano

In this paper we present an application of the use of autocopulas for modelling financial time series showing serial dependencies that are not necessarily linear. The approach presented here is semi-parametric in that it is characterized by…

Risk Management · Quantitative Finance 2015-07-20 Antony Ware , Ilnaz Asadzadeh

The estimation of dependencies between multiple variables is a central problem in the analysis of financial time series. A common approach is to express these dependencies in terms of a copula function. Typically the copula function is…

Machine Learning · Statistics 2013-07-02 José Miguel Hernández-Lobato , James Robert Lloyd , Daniel Hernández-Lobato