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We propose a method for constructing sparse high-frequency volatility estimators that are robust against change points in the spot volatility process. The estimators we propose are $\ell_1$-regularized versions of existing volatility…

Statistical Finance · Quantitative Finance 2024-07-02 Greeshma Balabhadra , El Mehdi Ainasse , Pawel Polak

Volatility forecasts play a central role among equity risk measures. Besides traditional statistical models, modern forecasting techniques based on machine learning can be employed when treating volatility as a univariate, daily…

Risk Management · Quantitative Finance 2024-08-09 Fernando Moreno-Pino , Stefan Zohren

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 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

Learning graphs from sets of nodal observations represents a prominent problem formally known as graph topology inference. However, current approaches are limited by typically focusing on inferring single networks, and they assume that…

Social and Information Networks · Computer Science 2021-11-17 Samuel Rey , Andrei Buciulea , Madeline Navarro , Santiago Segarra , Antonio G. Marques

Trading volume movement prediction is the key in a variety of financial applications. Despite its importance, there is few research on this topic because of its requirement for comprehensive understanding of information from different…

Statistical Finance · Quantitative Finance 2021-08-26 Liang Zhao , Wei Li , Ruihan Bao , Keiko Harimoto , YunfangWu , Xu Sun

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

This paper develops a flexible and computationally efficient multivariate volatility model, which allows for dynamic conditional correlations and volatility spillover effects among financial assets. The new model has desirable properties…

Methodology · Statistics 2025-07-25 Wenyu Li , Yuchang Lin , Qianqian Zhu , Guodong Li

This paper proposes a weather-to-voltage (W2V) predictive modeling framework to learn the underlying weather-grid nexus. Unlike existing approaches on weather-informed grid operations, our proposed W2V model can achieve the joint analysis…

Systems and Control · Electrical Eng. & Systems 2026-04-28 Sol Lim , Min-Seung Ko , Farnaz Safdarian , Hao Zhu

The assumption of using a static graph to represent multivariate time-varying signals oversimplifies the complexity of modeling their interactions over time. We propose a Dynamic Multi-hop model that captures dynamic interactions among…

Signal Processing · Electrical Eng. & Systems 2024-11-26 Yi Yan , Fengfan Zhao , Ercan Engin Kuruoglu

We propose a neural network-based approach to calibrating stochastic volatility models, which combines the pioneering grid approach by Horvath et al. (2021) with the pointwise two-stage calibration of Bayer et al. (2018) and Liu et al.…

Pricing of Securities · Quantitative Finance 2024-01-15 Fabio Baschetti , Giacomo Bormetti , Pietro Rossi

This paper proposes a novel model for predicting subgraphs in dynamic graphs, an extension of traditional link prediction. This proposed end-to-end model learns a mapping from the subgraph structures in the current snapshot to the subgraph…

Social and Information Networks · Computer Science 2021-08-18 Yuan Li , Chuanchang Chen , Yubo Tao , Hai Lin

Shallow node embeddings like node2vec (N2V) can be used for nodes without features or to supplement existing features with structure-based information. Embedding methods like N2V are limited in their application on new nodes, which…

Machine Learning · Computer Science 2025-06-06 Nicolas Lell , Ansgar Scherp

This paper tests whether graph neural networks improve realized volatility forecasts and whether those forecasts improve portfolio performance. Using weekly realized volatility for 465 S&P 500 equities from 2015-2025, Heterogeneous…

Portfolio Management · Quantitative Finance 2026-05-21 Rylan Wade

Accurate multivariate time series forecasting hinges on inter-series correlations, which often evolve in complex ways across different temporal scales. Existing methods are limited in modeling these multi-scale dependencies and struggle to…

Machine Learning · Computer Science 2026-01-27 Shaoxun Wang , Xingjun Zhang , Qianyang Li , Jiawei Cao , Zhendong Tan

Understanding non-linear relationships among financial instruments has various applications in investment processes ranging from risk management, portfolio construction and trading strategies. Here, we focus on interconnectedness among…

Computational Finance · Quantitative Finance 2022-07-18 Bhaskarjit Sarmah , Nayana Nair , Dhagash Mehta , Stefano Pasquali

This article investigates the ability of graph neural networks (GNNs) to identify risky conditions in a power grid over the subsequent few hours, without explicit, high-resolution information regarding future generator on/off status (grid…

Systems and Control · Electrical Eng. & Systems 2024-05-14 Yadong Zhang , Pranav M Karve , Sankaran Mahadevan

We derive a feasible criterion for the bias-optimal selection of the tuning parameters involved in estimating the integrated volatility of the spot volatility via the simple realized estimator by Barndorff-Nielsen and Veraart (2009). Our…

Econometrics · Economics 2021-07-19 Giacomo Toscano , Maria Cristina Recchioni

This paper introduces one new multivariate volatility model that can accommodate an appropriately defined network structure based on low-frequency and high-frequency data. The model reduces the number of unknown parameters and the…

Statistical Finance · Quantitative Finance 2022-04-28 Huiling Yuan , Guodong Li , Junhui Wang

Autonomous vehicles navigate in dynamically changing environments under a wide variety of conditions, being continuously influenced by surrounding objects. Modelling interactions among agents is essential for accurately forecasting other…

Machine Learning · Computer Science 2021-06-01 Sandra Carrasco , David Fernández Llorca , Miguel Ángel Sotelo