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Related papers: Variational Heteroscedastic Volatility Model

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A new machine learning scheme, termed versatile reservoir computing, is proposed for sustaining the dynamics of heterogeneous complex networks. We show that a single, small-scale reservoir computer trained on time series from a subset of…

Chaotic Dynamics · Physics 2025-05-22 Yao Du , Huawei Fan , Xingang Wang

The stochastic volatility model is one of volatility models which infer latent volatility of asset returns. The Bayesian inference of the stochastic volatility (SV) model is performed by the hybrid Monte Carlo (HMC) algorithm which is…

Computational Finance · Quantitative Finance 2014-08-06 Tetsuya Takaishi

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

In an efficient stock market, the returns and their time-dependent volatility are often jointly modeled by stochastic volatility models (SVMs). Over the last few decades several SVMs have been proposed to adequately capture the defining…

Applications · Statistics 2017-03-21 Sujay Mukhoti , Pritam Ranjan

Financial markets are a complex dynamical system. The complexity comes from the interaction between a market and its participants, in other words, the integrated outcome of activities of the entire participants determines the markets trend,…

Statistical Finance · Quantitative Finance 2022-01-31 Jia Wang , Tong Sun , Benyuan Liu , Yu Cao , Hongwei Zhu

Using high frequency data, we have studied empirically the change of volatility, also called volatility derivative, for various time horizons. In particular, the correlation between the volatility derivative and the volatility realized in…

Statistical Mechanics · Physics 2009-11-07 Gilles Zumbach , Paul Lynch

This paper develops a Bayesian procedure for estimation and forecasting of the volatility of multivariate time series. The foundation of this work is the matrix-variate dynamic linear model, for the volatility of which we adopt a…

Statistical Finance · Quantitative Finance 2008-12-02 K. Triantafyllopoulos

Obtaining reliable estimates of conditional covariance matrices is an important task of heteroskedastic multivariate time series. In portfolio optimization and financial risk management, it is crucial to provide measures of uncertainty and…

Methodology · Statistics 2022-09-19 Davide Ravagli , Georgi N. Boshnakov

In multivariate time series, the estimation of the covariance matrix of the observation innovations plays an important role in forecasting as it enables the computation of the standardized forecast error vectors as well as it enables the…

Methodology · Statistics 2008-02-04 K. Triantafyllopoulos

Classical solvable stochastic volatility models (SVM) use a CEV process for instantaneous variance where the CEV parameter $\gamma$ takes just few values: 0 - the Ornstein-Uhlenbeck process, 1/2 - the Heston (or square root) process, 1-…

Pricing of Securities · Quantitative Finance 2012-07-03 Andrey Itkin

Deep generative models often perform poorly in real-world applications due to the heterogeneity of natural data sets. Heterogeneity arises from data containing different types of features (categorical, ordinal, continuous, etc.) and…

Machine Learning · Computer Science 2020-06-23 Chao Ma , Sebastian Tschiatschek , José Miguel Hernández-Lobato , Richard Turner , Cheng Zhang

Sequential latent-variable models with subject-specific random effects provide a flexible framework for modeling temporally structured data with both local latent dynamics and stable between-subject heterogeneity. In such models,…

Methodology · Statistics 2026-04-28 Xingche Guo

Heteroskedasticity is a common feature of financial time series and is commonly addressed in the model building process through the use of ARCH and GARCH processes. More recently multivariate variants of these processes have been in the…

Methodology · Statistics 2015-12-18 Alexander Aue , Lajos Horvath , Daniel Pellatt

Non-stationary extremal dependence, whereby the relationship between the extremes of multiple variables evolves over time, is commonly observed in many environmental and financial data sets. However, most multivariate extreme value models…

Methodology · Statistics 2025-09-29 C. J. R. Murphy-Barltrop , J. L. Wadsworth , M. de Carvalho , B. D. Youngman

This paper focuses on modeling the dynamic attributes of a dynamic network with a fixed number of vertices. These attributes are considered as time series which dependency structure is influenced by the underlying network. They are modeled…

Methodology · Statistics 2019-11-11 Jonas Krampe

High-dimensional vector autoregressive (VAR) models provide a flexible framework for characterizing dynamic dependence in multivariate spatio-temporal systems, but their unrestricted estimation becomes infeasible when multiple variables are…

Methodology · Statistics 2026-05-04 Peiliang Bai

Vector autoregressive (VAR) models have become a staple in the analysis of multivariate time series and are formulated in the time domain as difference equations, with an implied covariance structure. In many contexts, it is desirable to…

Methodology · Statistics 2014-06-04 Scott H. Holan , Tucker S. McElroy , Guohui Wu

Recent developments in financial time series focus on modeling volatility across multiple assets or indices in a multivariate framework, accounting for potential interactions such as spillover effects. Furthermore, the increasing…

Applications · Statistics 2026-01-26 Edoardo Otranto , Luca Scaffidi Domianello

Motivated by recent work studying massive imaging data in the neuroimaging literature, we propose multivariate varying coefficient models (MVCM) for modeling the relation between multiple functional responses and a set of covariates. We…

Statistics Theory · Mathematics 2013-02-19 Hongtu Zhu , Runze Li , Linglong Kong

Stochastic volatility (SV) models are nonlinear state-space models that enjoy increasing popularity for fitting and predicting heteroskedastic time series. However, due to the large number of latent quantities, their efficient estimation is…

Computation · Statistics 2021-12-02 Darjus Hosszejni , Gregor Kastner