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We study the estimation of leverage effect and volatility of volatility by using high-frequency data with the presence of jumps. We first construct spot volatility estimator by using the empirical characteristic function of the…

Methodology · Statistics 2026-03-03 Qiang Liu , Zhi Liu , Wang Zhou

Jumps and market microstructure noise are stylized features of high-frequency financial data. It is well known that they introduce bias in the estimation of volatility (including integrated and spot volatilities) of assets, and many methods…

Econometrics · Economics 2023-02-20 Qiang Liu , Zhi Liu

A technique for on-line estimation of spot volatility for high-frequency data is developed. The algorithm works directly on the transaction data and updates the volatility estimate immediately after the occurrence of a new transaction.…

Methodology · Statistics 2013-01-15 Rainer Dahlhaus , Jan C. Neddermeyer

This work develops change-point methods for statistics of high-frequency data. The main interest is in the volatility of an It\^{o} semi-martingale, the latter being discretely observed over a fixed time horizon. We construct a…

Statistics Theory · Mathematics 2016-01-13 Markus Bibinger , Moritz Jirak , Mathias Vetter

We propose a new estimator of high-dimensional spot volatility matrices satisfying a low-rank plus sparse structure from noisy and asynchronous high-frequency data collected for an ultra-large number of assets. The noise processes are…

Econometrics · Economics 2024-03-12 Degui Li , Oliver Linton , Haoxuan Zhang

In this paper, we consider estimating spot/instantaneous volatility matrices of high-frequency data collected for a large number of assets. We first combine classic nonparametric kernel-based smoothing with a generalised shrinkage technique…

Econometrics · Economics 2026-04-22 Ruijun Bu , Degui Li , Oliver Linton , Hanchao Wang

We propose a new, computationally efficient, sparsity adaptive changepoint estimator for detecting changes in unknown subsets of a high-dimensional data sequence. Assuming the data sequence is Gaussian, we prove that the new method…

Methodology · Statistics 2023-11-27 Per August Jarval Moen , Ingrid Kristine Glad , Martin Tveten

We propose model-free (nonparametric) estimators of the volatility of volatility and leverage effect using high-frequency observations of short-dated options. At each point in time, we integrate available options into estimates of the…

Econometrics · Economics 2024-01-24 Carsten H. Chong , Viktor Todorov

We present a comprehensive theory of homogeneous volatility (and variance) estimators of arbitrary stochastic processes that fully exploit the OHLC (open, high, low, close) prices. For this, we develop the theory of most efficient…

Statistical Finance · Quantitative Finance 2009-08-13 A. Saichev , D. Sornette , V. Filimonov

We develop further the spot volatility estimator introduced in Hoffmann, Munk and Schmidt-Hieber (2012) from a practical point of view and make it useful for the analysis of high-frequency financial data. In a first part, we adjust the…

Applications · Statistics 2013-09-25 Till Sabel , Johannes Schmidt-Hieber , Axel Munk

The estimation of the frequencies of multiple superimposed exponentials in noise is an important research problem due to its various applications from engineering to chemistry. In this paper, we propose an efficient and accurate algorithm…

Numerical Analysis · Mathematics 2016-05-05 Shanglin Ye , Elias Aboutanios

The variance of noise plays an important role in many change-point detection procedures and the associated inferences. Most commonly used variance estimators require strong assumptions on the true mean structure or normality of the error…

Methodology · Statistics 2023-11-17 Ning Hao , Yue Selena Niu , Han Xiao

Estimating spot covariance is an important issue to study, especially with the increasing availability of high-frequency financial data. We study the estimation of spot covariance using a kernel method for high-frequency data. In…

Methodology · Statistics 2019-05-21 Konul Mustafayeva , Weining Wang

We propose new nonparametric estimators of the integrated volatility of an It\^{o} semimartingale observed at discrete times on a fixed time interval with mesh of the observation grid shrinking to zero. The proposed estimators achieve the…

Statistics Theory · Mathematics 2014-05-30 Jean Jacod , Viktor Todorov

In this paper, we propose a price staleness factor model that accounts for pervasive market friction across assets and incorporates relevant covariates. Using large-panel high-frequency data, we derive the maximum likelihood estimators of…

Statistics Theory · Mathematics 2026-04-07 Xinbing Kong , Bin Wu , Wuyi Ye

High-frequency data observed on the prices of financial assets are commonly modeled by diffusion processes with micro-structure noise, and realized volatility-based methods are often used to estimate integrated volatility. For problems…

Statistics Theory · Mathematics 2010-02-26 Yazhen Wang , Jian Zou

There are several approaches to modeling and forecasting time series as applied to prices of commodities and financial assets. One of the approaches is to model the price as a non-stationary time series process with heteroscedastic…

Statistical Finance · Quantitative Finance 2024-07-01 Andrei Renatovich Batyrov

This work develops techniques for the sequential detection and location estimation of transient changes in the volatility (standard deviation) of time series data. In particular, we introduce a class of change detection algorithms based on…

Systems and Control · Computer Science 2017-12-29 Alireza Ahrabian , Nazli Farajidavar , Clive Cheong-Took , Payam Barnaghi

The usage of a spot volatility estimate based on a volatility decomposition in a time-changed price-model according to the trading times is investigated. In this model clock-time volatility splits up into the product of tick-time volatility…

Probability · Mathematics 2016-05-10 Rainer Dahlhaus , Sophon Tunyavetchakit

In this paper, we develop econometric tools to analyze the integrated volatility of the efficient price and the dynamic properties of microstructure noise in high-frequency data under general dependent noise. We first develop consistent…

Statistics Theory · Mathematics 2018-06-14 Z. Merrick Li , Roger J. A. Laeven , Michel H. Vellekoop
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