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We propose an enhancement to wholesale electricity markets whereby the exposure of consumers to increasingly large and volatile consumer payments arising as a byproduct of volatile real-time net loads -- i.e., loads minus renewable outputs…

Optimization and Control · Mathematics 2024-08-13 Daniel Bienstock , Yury Dvorkin , Cheng Guo , Robert Mieth , Jiayi Wang

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…

Time series foundation models (TSFMs) have recently achieved strong zero-shot forecasting performance through large-scale pretraining and retrieval-augmented prediction. However, our empirical analysis reveals a non-trivial limitation of…

Machine Learning · Computer Science 2026-05-26 Jinjin Chi , Lei Feng , Lulu Zhang , Yongcheng Jing , Yiming Wang , Ximing Li , Jialie Shen , Leszek Rutkowski , Dacheng Tao

In this study, we constructed daily high-frequency sentiment data and used the VAR method to attempt to predict the next day's implied volatility surface. We utilized 630,000 text data entries from the East Money Stock Forum from 2014 to…

Machine Learning · Computer Science 2024-05-21 Jiahao Weng , Yan Xie

Delay embedding---a method for reconstructing dynamical systems by delay coordinates---is widely used to forecast nonlinear time series as a model-free approach. When multivariate time series are observed, several existing frameworks can be…

Machine Learning · Statistics 2019-07-04 Shunya Okuno , Kazuyuki Aihara , Yoshito Hirata

In recent works by Yang et al. (2017a,b), and Yagli et al. (2019), geographical, temporal, and sequential deterministic reconciliation of hierarchical photovoltaic (PV) power generation have been considered for a simulated PV dataset in…

Applications · Statistics 2022-09-16 Tommaso Di Fonzo , Daniele Girolimetto

Multi-step forecasting is often described through a simple rule of thumb: recursive strategies are said to have high bias and low variance, while direct strategies are said to have low bias and high variance. We revisit this belief by…

Machine Learning · Computer Science 2025-11-17 Riku Green , Huw Day , Zahraa S. Abdallah , Telmo M. Silva Filho

Many real-life applications involve simultaneously forecasting multiple time series that are hierarchically related via aggregation or disaggregation operations. For instance, commercial organizations often want to forecast inventories…

Machine Learning · Computer Science 2021-02-26 Xing Han , Sambarta Dasgupta , Joydeep Ghosh

In this paper, we develop a penalized realized variance (PRV) estimator of the quadratic variation (QV) of a high-dimensional continuous It\^{o} semimartingale. We adapt the principle idea of regularization from linear regression to…

Econometrics · Economics 2026-01-28 Kim Christensen , Mikkel Slot Nielsen , Mark Podolskij

Multivariate time series forecasting with hierarchical structure is pervasive in real-world applications, demanding not only predicting each level of the hierarchy, but also reconciling all forecasts to ensure coherency, i.e., the forecasts…

Machine Learning · Computer Science 2025-03-04 Shiyu Wang , Fan Zhou , Yinbo Sun , Lintao Ma , James Zhang , Yangfei Zheng

It is well known that modeling and forecasting realized covariance matrices of asset returns play a crucial role in the field of finance. The availability of high frequency intraday data enables the modeling of the realized covariance…

Computational Engineering, Finance, and Science · Computer Science 2021-07-23 Yanwen Fang , Philip L. H. Yu , Yaohua Tang

Grasping the historical volatility of stock market indices and accurately estimating are two of the major focuses of those involved in the financial securities industry and derivative instruments pricing. This paper presents the results of…

Mathematical Finance · Quantitative Finance 2022-05-04 Claudiu Vinte , Marcel Ausloos , Titus Felix Furtuna

The autocorrelation function of volatility in financial time series is fitted well by a superposition of several exponents. Such a case admits an explicit analytical solution of the problem of constructing the best linear forecast of a…

Statistical Mechanics · Physics 2009-11-10 M. I. Krivoruchenko

We present a novel methodology for modeling and forecasting multivariate realized volatilities using customized graph neural networks to incorporate spillover effects across stocks. The proposed model offers the benefits of incorporating…

Statistical Finance · Quantitative Finance 2023-08-04 Chao Zhang , Xingyue Pu , Mihai Cucuringu , Xiaowen Dong

This paper describes an approach to simultaneously identify clusters and estimate cluster-specific regression parameters from the given data. Such an approach can be useful in learning the relationship between input and output when the…

Statistical Finance · Quantitative Finance 2024-01-02 Udai Nagpal , Krishan Nagpal

In this paper, we analyse the South African implied volatility in various setting. We assess the information content in SAVI implied volatility using daily markets data. Our empirical application is focused on the FTSE/JSE Top 40 index and…

Statistical Finance · Quantitative Finance 2014-03-25 Romuald N. Kenmoe S , Carine D. Tafou

We investigate the predictability of several range-based stock volatility estimators, and compare them to the standard close-to-close estimator which is most commonly acknowledged as the volatility. The patterns of volatility changes are…

Computational Finance · Quantitative Finance 2018-03-21 Gábor Petneházi , József Gáll

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

The right ventricular (RV) function deterioration strongly predicts clinical outcomes in numerous circumstances. To boost the clinical deployment of ensemble regression methods that quantify RV volumes using tabular data from the widely…

Tissues and Organs · Quantitative Biology 2024-03-13 Tuan A. Bohoran , Polydoros N. Kampaktsis , Laura McLaughlin , Jay Leb , Gerry P. McCann , Archontis Giannakidis

Stock market volatility forecasting is a task relevant to assessing market risk. We investigate the interaction between news and prices for the one-day-ahead volatility prediction using state-of-the-art deep learning approaches. The…

Statistical Finance · Quantitative Finance 2018-12-31 Marcelo Sardelich , Suresh Manandhar