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Point forecast reconciliation of collection of time series with linear aggregation constraints has evolved substantially over the last decade. A few commonly used methods are GLS (generalized least squares), OLS (ordinary least squares),…

Methodology · Statistics 2021-03-23 Shanika L Wickramasuriya

Forecast reconciliation is the post-forecasting process aimed to revise a set of incoherent base forecasts into coherent forecasts in line with given data structures. Most of the point and probabilistic regression-based forecast…

Methodology · Statistics 2023-12-25 Daniele Girolimetto , Tommaso Di Fonzo

In minimum trace (MinT) forecast reconciliation, the covariance matrix of the base forecasts errors plays a crucial role. Typically, this matrix is estimated and then treated as known. This can lead to underestimation of the variance of the…

Methodology · Statistics 2026-05-11 Chiara Carrara , Dario Azzimonti , Giorgio Corani , Lorenzo Zambon

Forecast reconciliation is a post-forecasting process that involves transforming a set of incoherent forecasts into coherent forecasts which satisfy a given set of linear constraints for a multivariate time series. In this paper we extend…

Methodology · Statistics 2023-12-25 Daniele Girolimetto , George Athanasopoulos , Tommaso Di Fonzo , Rob J Hyndman

Forecast reconciliation adjusts independently generated forecasts so that they satisfy some known constraints. While probabilistic forecast reconciliation is well established for linear constraints, some practical forecasting problems…

Methodology · Statistics 2026-04-30 Anubhab Biswas , Lorenzo Zambon , Lorenzo Nespoli , Giorgio Corani

Forecast reconciliation is an important research topic. Yet, there is currently neither formal framework nor practical method for the probabilistic reconciliation of count time series. In this paper we propose a definition of coherency and…

Methodology · Statistics 2023-06-28 Giorgio Corani , Dario Azzimonti , Nicolò Rubattu

Aggregation constraints, arising from geographical or sectoral division, frequently emerge in a large set of time series. Coherent forecasts of these constrained series are anticipated to conform to their hierarchical structure organized by…

Applications · Statistics 2026-02-27 Zhichao Wang , Shanshan Wang , Wei Cao , Fei Yang

Time series often appear in an additive hierarchical structure. In such cases, time series on higher levels are the sums of their subordinate time series. This hierarchical structure places a natural constraint on forecasts. However,…

Methodology · Statistics 2025-03-20 Louis Steinmeister , Markus Pauly

In a recent paper, while elucidating the links between forecast combination and cross-sectional forecast reconciliation, Hollyman et al. (2021) have proposed a forecast combination-based approach to the reconciliation of a simple hierarchy.…

Applications · Statistics 2021-06-11 Tommaso Di Fonzo , Daniele Girolimetto

We propose to estimate the weight matrix used for forecast reconciliation as parameters in a general linear model in order to quantify its uncertainty. This implies that forecast reconciliation can be formulated as an orthogonal projection…

Methodology · Statistics 2024-02-12 Jan Kloppenborg Møller , Peter Nystrup , Poul G. Hjorth , Henrik Madsen

Methods for forecasting time series adhering to linear constraints have seen notable development in recent years, especially with the advent of forecast reconciliation. This paper extends forecast reconciliation to the open question of…

Methodology · Statistics 2025-10-27 Daniele Girolimetto , Anastasios Panagiotelis , Tommaso Di Fonzo , Han Li

Reconciliation enforces coherence between hierarchical forecasts, in order to satisfy a set of linear constraints. While most works focus on the reconciliation of the point forecasts, we consider probabilistic reconciliation and we analyze…

Applications · Statistics 2024-02-15 Lorenzo Zambon , Arianna Agosto , Paolo Giudici , Giorgio Corani

We present a scheme by which a probabilistic forecasting system whose predictions have poor probabilistic calibration may be recalibrated by incorporating past performance information to produce a new forecasting system that is demonstrably…

Methodology · Statistics 2019-04-08 Carlo Graziani , Robert Rosner , Jennifer M. Adams , Reason L. Machete

This paper focuses on forecasting hierarchical time-series data, where each higher-level observation equals the sum of its corresponding lower-level time series. In such contexts, the forecast values should be coherent, meaning that the…

Machine Learning · Computer Science 2026-02-06 Shuhei Aikawa , Aru Suzuki , Kei Yoshitake , Kanata Teshigawara , Akira Iwabuchi , Ken Kobayashi , Kazuhide Nakata

The problem of combining multiple forecasts of related quantities that obey expected equality and additivity constraints, often referred to a hierarchical forecast reconciliation, is naturally stated as a simple optimization problem. In…

Methodology · Statistics 2026-02-10 Tianyu Wang , Matthew C. Johnson , Steven Klee , Matthew L. Malloy

Forecast reconciliation is a post-forecasting process aimed to improve the quality of the base forecasts for a system of hierarchical/grouped time series (Hyndman et al., 2011). Contemporaneous (cross-sectional) and temporal hierarchies…

Methodology · Statistics 2023-10-30 Tommaso Di Fonzo , Daniele Girolimetto

As the popularity of hierarchical point forecast reconciliation methods increases, there is a growing interest in probabilistic forecast reconciliation. Many studies have utilized machine learning or deep learning techniques to implement…

Artificial Intelligence · Computer Science 2023-11-22 Guanyu Zhang , Feng Li , Yanfei Kang

Hierarchical forecasting with reconciliation requires forecasting values of a hierarchy (e.g.~customer demand in a state and district), such that forecast values are linked (e.g.~ district forecasts should add up to the state forecast).…

Machine Learning · Computer Science 2025-05-09 Charupriya Sharma , Iñaki Estella Aguerri , Daniel Guimarans

Hierarchical time series are common in several applied fields. The forecasts for these time series are required to be coherent, that is, to satisfy the constraints given by the hierarchy. The most popular technique to enforce coherence is…

Machine Learning · Statistics 2023-10-13 Lorenzo Zambon , Dario Azzimonti , Giorgio Corani

Some time series can be hierarchically organized into levels based on certain characteristics, such as geography or other attributes of interest. These series are referred to as hierarchical time series. Typically, forecasts are generated…

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