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In hierarchical forecasting, the process of forecast reconciliation transforms a set of "base" or "raw" forecasts, which do not satisfy the hierarchical aggregation constraints in the real data, into a set of "coherent" forecasts, which do…

Methodology · Statistics 2026-05-29 Minh Nguyen , Farshid Vahid , Shanika L Wickramasuriya

The features in many prediction models naturally take the form of a hierarchy. The lower levels represent individuals or events. These units group naturally into locations and intervals or other aggregates, often at multiple levels. Levels…

Applications · Statistics 2023-07-03 John Mark Agosta , Mario Inchiosa

We introduce a dynamic approach to probabilistic forecast reconciliation at scale. Our model differs from the existing literature in this area in several important ways. Firstly we explicitly allow the weights allocated to the base…

Methodology · Statistics 2024-09-20 Ross Hollyman , Fotios Petropoulos , Michael E. Tipping

The practical importance of coherent forecasts in hierarchical forecasting has inspired many studies on forecast reconciliation. Under this approach, so-called base forecasts are produced for every series in the hierarchy and are…

Methodology · Statistics 2022-04-21 Bohan Zhang , Yanfei Kang , Anastasios Panagiotelis , Feng Li

Reconciliation enforces coherence between hierarchical forecasts, in order to satisfy a set of linear constraints. While most works focus on the reconciliation of the point forecasts, we consider probabilistic reconciliation and we analyze…

Applications · Statistics 2024-02-15 Lorenzo Zambon , Arianna Agosto , Paolo Giudici , Giorgio Corani

Multivariate time series forecasting with hierarchical structure is widely used in real-world applications, e.g., sales predictions for the geographical hierarchy formed by cities, states, and countries. The hierarchical time series (HTS)…

Machine Learning · Computer Science 2023-10-10 Fan Zhou , Chen Pan , Lintao Ma , Yu Liu , Shiyu Wang , James Zhang , Xinxin Zhu , Xuanwei Hu , Yunhua Hu , Yangfei Zheng , Lei Lei , Yun Hu

Forecast reconciliation is a post-forecasting process that involves transforming a set of incoherent forecasts into coherent forecasts which satisfy a given set of linear constraints for a multivariate time series. In this paper we extend…

Methodology · Statistics 2023-12-25 Daniele Girolimetto , George Athanasopoulos , Tommaso Di Fonzo , Rob J Hyndman

Forecast reconciliation has become a prominent topic in recent forecasting literature, with a primary distinction made between cross-sectional and temporal hierarchies. This work focuses on temporal hierarchies, such as aggregating monthly…

Methodology · Statistics 2024-09-27 Lukas Neubauer , Peter Filzmoser

Optimal decision-making compels us to anticipate the future at different horizons. However, in many domains connecting together predictions from multiple time horizons and abstractions levels across their organization becomes all the more…

Machine Learning · Computer Science 2023-07-06 Julien Leprince , Henrik Madsen , Jan Kloppenborg Møller , Wim Zeiler

Forecast reconciliation is an important research topic. Yet, there is currently neither formal framework nor practical method for the probabilistic reconciliation of count time series. In this paper we propose a definition of coherency and…

Methodology · Statistics 2023-06-28 Giorgio Corani , Dario Azzimonti , Nicolò Rubattu

We propose a novel approach to the problem of clustering hierarchically aggregated time-series data, which has remained an understudied problem though it has several commercial applications. We first group time series at each aggregated…

Machine Learning · Computer Science 2022-05-30 Xing Han , Tongzheng Ren , Jing Hu , Joydeep Ghosh , Nhat Ho

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

We introduce a framework to dynamically combine heterogeneous models called \texttt{DYCHEM}, which forecasts a set of time series that are related through an aggregation hierarchy. Different types of forecasting models can be employed as…

Machine Learning · Computer Science 2023-01-18 Xing Han , Jing Hu , Joydeep Ghosh

Cross-temporal forecast reconciliation aims to ensure consistency across forecasts made at different temporal and cross-sectional levels. We explore the relationships between sequential, iterative, and optimal combination approaches, and…

Methodology · Statistics 2024-10-28 Daniele Girolimetto , Tommaso Di Fonzo

Collected data, which is used for analysis or prediction tasks, often have a hierarchical structure, for example, data from various people performing the same task. Modeling the data's structure can improve the reliability of the derived…

Applications · Statistics 2018-11-12 Dennis Becker

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 economics we often face a system, which intrinsically imposes a structure of hierarchy of its components, i.e., in modelling trade accounts related to foreign exchange or in optimization of regional air protection policy. A problem of…

Econometrics · Economics 2018-04-04 Daniel Kosiorowski , Dominik Mielczarek , Jerzy. P. Rydlewski

Time series forecasting plays an increasingly important role in modern business decisions. In today's data-rich environment, people often aim to choose the optimal forecasting model for their data. However, identifying the optimal model…

Applications · Statistics 2021-12-17 Xixi Li , Fotios Petropoulos , Yanfei Kang

The paper describes the use of Bayesian regression for building time series models and stacking different predictive models for time series. Using Bayesian regression for time series modeling with nonlinear trend was analyzed. This approach…

Applications · Statistics 2022-01-07 Bohdan M. Pavlyshenko

Platform businesses operate on a digital core and their decision making requires high-dimensional accurate forecast streams at different levels of cross-sectional (e.g., geographical regions) and temporal aggregation (e.g., minutes to…

Econometrics · Economics 2024-06-03 Jeroen Rombouts , Marie Ternes , Ines Wilms