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In econometrics and finance, the vector error correction model (VECM) is an important time series model for cointegration analysis, which is used to estimate the long-run equilibrium variable relationships. The traditional analysis and…

Machine Learning · Statistics 2017-10-17 Ziping Zhao , Daniel P. Palomar

We employ a Bayesian modelling technique for high dimensional cointegration estimation to construct low volatility portfolios from a large number of stocks. The proposed Bayesian framework effectively identifies sparse and important…

Applications · Statistics 2024-07-16 Parley R Yang , Alexander Y Shestopaloff

Interactions among multiple time series of positive random variables are crucial in diverse financial applications, from spillover effects to volatility interdependence. A popular model in this setting is the vector Multiplicative Error…

Computation · Statistics 2021-07-12 Nicola Donelli , Stefano Peluso , Antonietta Mira

We introduce the Historical and Dynamic Volatility Ratios (HVR/DVR) and show that equity and index volatilities are cointegrated at intraday and daily horizons. This allows us to construct a VECM to forecast portfolio volatility by…

Portfolio Management · Quantitative Finance 2025-09-30 Gabriele Casto

High-dimensional variable selection, with many more covariates than observations, is widely documented in standard regression models, but there are still few tools to address it in non-linear mixed-effects models where data are collected…

Statistics Theory · Mathematics 2024-04-08 Marion Naveau , Guillaume Kon Kam King , Renaud Rincent , Laure Sansonnet , Maud Delattre

This paper studies methods for testing and estimating change-points in the covariance structure of a high-dimensional linear time series. The assumed framework allows for a large class of multivariate linear processes (including vector…

Statistics Theory · Mathematics 2020-01-14 Ansgar Steland

The spatial error model (SEM) is a type of simultaneous autoregressive (SAR) model for analysing spatially correlated data. Markov chain Monte Carlo (MCMC) is one of the most widely used Bayesian methods for estimating SEM, but it has…

Methodology · Statistics 2024-06-14 Anjana Wijayawardhana , David Gunawan , Thomas Suesse

This paper proposes a Matrix Error Correction Model to identify cointegration relations in matrix-valued time series. We hereby allow separate cointegrating relations along the rows and columns of the matrix-valued time series and use…

Econometrics · Economics 2025-01-27 Alain Hecq , Ivan Ricardo , Ines Wilms

This paper analyzes the process of long-run co-movements and stock market globalization on the basis of cointegration tests and vector error correction (VEC) models. The cointegration tests used here allow for structural breaks to be…

Statistical Finance · Quantitative Finance 2011-01-24 Rui Menezes , Andreia Dioniso

Variational inference is an alternative estimation technique for Bayesian models. Recent work shows that variational methods provide consistent estimation via efficient, deterministic algorithms. Other tools, such as model selection using…

Methodology · Statistics 2023-08-01 Mark J. Meyer , Selina Carter , Elizabeth J. Malloy

As a statistical tool to assist formative assessments in educational settings, diagnostic classification models (DCMs) have been increasingly used to provide diagnostic information regarding examinees' attributes. DCMs often adopt a…

Computation · Statistics 2022-08-24 Motonori Oka , Shun Saso , Kensuke Okada

Varying coefficient models (VCMs) are widely used for estimating nonlinear regression functions for functional data. Their Bayesian variants using Gaussian process priors on the functional coefficients, however, have received limited…

Methodology · Statistics 2022-03-01 Rajarshi Guhaniyogi , Cheng Li , Terrance D. Savitsky , Sanvesh Srivastava

We consider the problem of jointly modeling and clustering populations of tensors by introducing a high-dimensional tensor mixture model with heterogeneous covariances. To effectively tackle the high dimensionality of tensor objects, we…

Methodology · Statistics 2024-11-21 Biao Cai , Jingfei Zhang , Will Wei Sun

We consider several issues related to the multidimensional integration using a network of heterogeneous computers. Based on these considerations, we develop a new general purpose scheme which can significantly reduce the time needed for…

Computational Physics · Physics 2009-10-30 S. Veseli

Cointegration is an important topic for time-series, and describes a relationship between two series in which a linear combination is stationary. Classically, the test for cointegration is based on a two stage process in which first the…

Computational Engineering, Finance, and Science · Computer Science 2012-07-03 Chris Bracegirdle , David Barber

A time-varying cointegration model for foreign exchange rates is presented. Unlike previous studies, we allow the loading matrix in the vector error correction (VEC) model to be varying over time. Because the loading matrix in the VEC model…

Statistical Finance · Quantitative Finance 2016-10-17 Mikio Ito , Akihiko Noda , Tatsuma Wada

Relevance Vector Machine (RVM) is a supervised learning algorithm extended from Support Vector Machine (SVM) based on the Bayesian sparsity model. Compared with the regression problem, RVM classification is difficult to be conducted because…

Machine Learning · Statistics 2022-10-28 Wenyang Wang , Dongchu Sun , Zhuoqiong He

In practical regression applications, multiple covariates are often measured, but not all may be associated with the response variable. Identifying and including only the relevant covariates in the model is crucial for improving prediction…

Methodology · Statistics 2026-03-10 Ana Carolina da Cruz , Camila P. E. de Souza , Pedro H. T. O. Sousa

Nonparametric varying coefficient (NVC) models are useful for modeling time-varying effects on responses that are measured repeatedly for the same subjects. When the number of covariates is moderate or large, it is desirable to perform…

Methodology · Statistics 2023-09-19 Ray Bai , Mary R. Boland , Yong Chen

Community detection is the task of clustering objects based on their pairwise relationships. Most of the model-based community detection methods, such as the stochastic block model and its variants, are designed for networks with binary…

Machine Learning · Statistics 2024-12-06 Xiang Li , Yunpeng Zhao , Qing Pan , Ning Hao
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