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We propose a multivariate GARCH model for non-stationary health time series by modifying the variance of the observations of the standard state space model. The proposed model provides an intuitive way of dealing with heteroskedastic data…

Methodology · Statistics 2023-03-16 Zayd Omar , David A. Stephens , Alexandra M. Schmidt , David L. Buckeridge

It is common for long financial time series to exhibit gradual change in the unconditional volatility. We propose a new model that captures this type of nonstationarity in a parsimonious way. The model augments the volatility equation of a…

Econometrics · Economics 2024-10-15 Niklas Ahlgren , Alexander Back , Timo Teräsvirta

We propose a continuous-time Markov-switching generalized autoregressive conditional heteroskedasticity (COMS-GARCH) process for handling irregularly spaced time series (TS) with multiple volatilities states. We employ a Gibbs sampler in…

Methodology · Statistics 2020-12-15 Yinan Li , Fang Liu

Volatility forecasting is essential for risk management and decision-making in financial markets. Traditional models like Generalized Autoregressive Conditional Heteroskedasticity (GARCH) effectively capture volatility clustering but often…

Mathematical Finance · Quantitative Finance 2024-10-23 Pulikandala Nithish Kumar , Nneka Umeorah , Alex Alochukwu

In this paper, we analyze the time-series of minute price returns on the Bitcoin market through the statistical models of generalized autoregressive conditional heteroskedasticity (GARCH) family. Several mathematical models have been…

Statistical Finance · Quantitative Finance 2021-02-01 Irena Barjašić , Nino Antulov-Fantulin

This paper presents a novel dynamic network autoregressive conditional heteroscedasticity (ARCH) model based on spatiotemporal ARCH models to forecast volatility in the US stock market. To improve the forecasting accuracy, the model…

Applications · Statistics 2023-03-21 Raffaele Mattera , Philipp Otto

The discrete-time GARCH methodology which has had such a profound influence on the modelling of heteroscedasticity in time series is intuitively well motivated in capturing many `stylized facts' concerning financial series, and is now…

Statistical Finance · Quantitative Finance 2008-12-18 Ross A. Maller , Gernot Müller , Alex Szimayer

A standard model of (conditional) heteroscedasticity, i.e., the phenomenon that the variance of a process changes over time, is the Generalized AutoRegressive Conditional Heteroskedasticity (GARCH) model, which is especially important for…

Methodology · Statistics 2018-07-24 Balázs Csanád Csáji

Here, we have analysed a GARCH(1,1) model with the aim to fit higher order moments for different companies' stock prices. When we assume a gaussian conditional distribution, we fail to capture any empirical data when fitting the first three…

Econometrics · Economics 2021-03-31 Luke De Clerk , Sergey Savel'ev

This paper develops a Bayesian framework for the realized exponential generalized autoregressive conditional heteroskedasticity (realized EGARCH) model, which can incorporate multiple realized volatility measures for the modelling of a…

Risk Management · Quantitative Finance 2020-08-25 Vica Tendenan , Richard Gerlach , Chao Wang

One of the important and widely used classes of models for non-Gaussian time series is the generalized autoregressive model average models (GARMA), which specifies an ARMA structure for the conditional mean process of the underlying time…

Methodology · Statistics 2021-05-13 Tingguo Zheng , Han Xiao , Rong Chen

This paper develops and estimates a multivariate affine GARCH(1,1) model with Normal Inverse Gaussian innovations that captures time-varying volatility, heavy tails, and dynamic correlation across asset returns. We generalize the…

Econometrics · Economics 2025-05-20 Ayush Jha , Abootaleb Shirvani , Ali Jaffri , Svetlozar T. Rachev , Frank J. Fabozzi

This paper intends to meet recent claims for the attainment of more rigorous statistical methodology within the econophysics literature. To this end, we consider an econometric approach to investigate the outcomes of the log-periodic model…

Statistical Finance · Quantitative Finance 2009-11-13 L. Gazola , C. Fernandes , A. Pizzinga , R. Riera

In this paper, we develop a hybrid approach to forecasting the volatility and risk of financial instruments by combining common econometric GARCH time series models with deep learning neural networks. For the latter, we employ Gated…

Risk Management · Quantitative Finance 2023-10-03 Jakub Michańków , Łukasz Kwiatkowski , Janusz Morajda

GARCH-type time series (characterized by Generalized Autoregressive Conditional Heteroskedasticity) exhibit pronounced volatility, autocorrelation, and heteroskedasticity. To address these challenges and enhance predictive accuracy, this…

Systems and Control · Electrical Eng. & Systems 2025-05-28 Hongpei Shao , Da-Qing Zhang , Feilong Lu

AutoRegressive Conditional Heteroscedasticity (ARCH) models are standard for modeling time series exhibiting volatility, with a rich literature in univariate and multivariate settings. In recent years, these models have been extended to…

Methodology · Statistics 2026-03-19 Alexander Aue , Sebastian Kühnert , Gregory Rice , Jeremy VanderDoes

Ranking data are frequently obtained nowadays but there are still scarce methods for treating these data when temporally observed. The present paper contributes to this topic by proposing and developing novel models for handling time series…

Methodology · Statistics 2025-02-10 Luiza Piancastelli , Wagner Barreto-Souza

A general class of time-varying regression models is considered in this paper. We estimate the regression coefficients by using local linear M-estimation. For these estimators, weak Bahadur representations are obtained and are used to…

Statistics Theory · Mathematics 2021-03-09 Sayar Karmakar , Stefan Richter , Wei Biao Wu

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

A family of continuous-time generalized autoregressive conditionally heteroscedastic processes, generalizing the $\operatorname {COGARCH}(1,1)$ process of Kl\"{u}ppelberg, Lindner and Maller [J. Appl. Probab. 41 (2004) 601--622], is…

Probability · Mathematics 2007-05-23 Peter Brockwell , Erdenebaatar Chadraa , Alexander Lindner