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The Foreign Exchange market is a significant market for speculators, characterized by substantial transaction volumes and high volatility. Accurately predicting the directional movement of currency pairs is essential for formulating a sound…

Statistical Finance · Quantitative Finance 2024-10-08 Kevin Cedric Guyard , Michel Deriaz

We study the local volatility function in the Foreign Exchange market where both domestic and foreign interest rates are stochastic. This model is suitable to price long-dated FX derivatives. We derive the local volatility function and…

Pricing of Securities · Quantitative Finance 2012-04-04 Griselda Deelstra , Grégory Rayée

Multivariate volatility modeling and forecasting are crucial in financial economics. This paper develops a copula-based approach to model and forecast realized volatility matrices. The proposed copula-based time series models can capture…

Statistical Finance · Quantitative Finance 2020-02-21 Wenjing Wang , Minjing Tao

This paper reports empirical evidence that a neural networks model is applicable to the statistically reliable prediction of foreign exchange rates. Time series data and technical indicators such as moving average, are fed to neural nets to…

Disordered Systems and Neural Networks · Physics 2016-08-31 V. V. Kondratenko , Yu. A Kuperin

Two nonparametric methods are presented for forecasting functional time series (FTS). The FTS we observe is a curve at a discrete-time point. We address both one-step-ahead forecasting and dynamic updating. Dynamic updating is a forward…

Methodology · Statistics 2021-05-11 Antonio Elías , Raúl Jiménez , Hanlin Shang

An approach is presented for making predictions about functional time series. The method is applied to data coming from periodically correlated processes and electricity demand, obtaining accurate point forecasts and narrow prediction bands…

Methodology · Statistics 2018-06-29 Antonio Elías , Raúl Jiménez

Using Chronos-2, an open-source time-series foundation model, we evaluate pretrained time-series models for economic and financial forecasting with an emphasis on whether multivariate (MV) inputs improve accuracy relative to univariate (UV)…

Statistical Finance · Quantitative Finance 2026-05-25 Sanjiv R Das , Tarang Goyal , Mohini Yadav

When modeling sub-national mortality rates, we should consider three features: (1) how to incorporate any possible correlation among sub-populations to potentially improve forecast accuracy through multi-population joint modeling; (2) how…

Methodology · Statistics 2020-09-22 Han Lin Shang , Steven Haberman

This paper introduces a global stock market volatility forecasting model that enhances forecasting accuracy and practical utility in real-world financial decision-making by integrating dynamic graph structures and encompassing all active…

General Finance · Quantitative Finance 2025-09-17 Zhengyang Chi , Junbin Gao , Chao Wang

Properties of low-variability periods in the time series are analysed. The theoretical approach is used to show the relationship between the multi-scaling of low-variability periods and multi-affinity of the time series. It is shown that…

Statistical Mechanics · Physics 2008-12-02 R. Kitt , J. Kalda

This paper addresses the prediction of stationary functional time series. Existing contributions to this problem have largely focused on the special case of first-order functional autoregressive processes because of their technical…

Methodology · Statistics 2014-04-01 Alexander Aue , Diogo Dubart Norinho , Siegfried Hörmann

In this paper we aim to improve existing empirical exchange rate models by accounting for uncertainty with respect to the underlying structural representation. Within a flexible Bayesian non-linear time series framework, our modeling…

Econometrics · Economics 2018-12-04 Niko Hauzenberger , Florian Huber

This thesis applies entropy as a model independent measure to address three research questions concerning financial time series. In the first study we apply transfer entropy to drawdowns and drawups in foreign exchange rates, to study their…

Statistical Finance · Quantitative Finance 2018-07-26 Stephan Schwill

Predicting volatility in financial markets, including stocks, index ETFs, foreign exchange, and cryptocurrencies, remains a challenging task due to the inherent complexity and non-linear dynamics of these time series. In this study, I apply…

Statistical Finance · Quantitative Finance 2024-10-17 Alex Li

Here, we address the problem of trend estimation for functional time series. Existing contributions either deal with detecting a functional trend or assuming a simple model. They consider neither the estimation of a general functional trend…

Methodology · Statistics 2020-08-24 Israel Martínez-Hernández , Marc G. Genton

High-dimensional functional time series offers a powerful framework for extending functional time series analysis to settings with multiple simultaneous dimensions, capturing both temporal dynamics and cross-sectional dependencies. We…

Methodology · Statistics 2025-12-08 Haixu Wang , Tianyu Guan , Han Lin Shang

Time series foundation models (FMs) have emerged as a popular paradigm for zero-shot multi-domain forecasting. These models are trained on numerous diverse datasets and claim to be effective forecasters across multiple different time series…

Risk Management · Quantitative Finance 2025-05-19 Anubha Goel , Puneet Pasricha , Martin Magris , Juho Kanniainen

In todays global economy, accuracy in predicting macro-economic parameters such as the foreign the exchange rate or at least estimating the trend correctly is of key importance for any future investment. In recent times, the use of…

Statistical Finance · Quantitative Finance 2020-02-25 Manav Kaushik , A K Giri

In this paper, we consider multivariate functional time series with a two-way dependence structure: a serial dependence across time points and a graphical interaction among the multiple functions within each time point. We develop the…

Methodology · Statistics 2026-01-27 Jianbin Tan , Decai Liang , Yongtao Guan , Hui Huang

We present a Bayesian approach for modeling multivariate, dependent functional data. To account for the three dominant structural features in the data--functional, time dependent, and multivariate components--we extend hierarchical dynamic…

Methodology · Statistics 2019-07-02 Daniel R. Kowal , David S. Matteson , David Ruppert