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Vine copulas are a flexible tool for multivariate non-Gaussian distributions. For data from an observational study where the explanatory variables and response variables are measured together, a proposed vine copula regression method uses…

Methodology · Statistics 2019-10-30 Bo Chang , Harry Joe

The $GARCH$ algorithm is the most renowned generalisation of Engle's original proposal for modelising {\it returns}, the $ARCH$ process. Both cases are characterised by presenting a time dependent and correlated variance or {\it…

Statistical Mechanics · Physics 2009-11-11 Silvio M. Duarte Queiros , Constantino Tsallis

Copulas are a powerful tool for modeling multivariate distributions as they allow to separately estimate the univariate marginal distributions and the joint dependency structure. However, known parametric copulas offer limited flexibility…

Machine Learning · Statistics 2021-11-11 Tim Janke , Mohamed Ghanmi , Florian Steinke

Vine copulas are a flexible tool for high-dimensional dependence modeling. In this article, we discuss the generation of approximate model-X knockoffs with vine copulas. It is shown how Gaussian knockoffs can be generalized to Gaussian…

Methodology · Statistics 2022-10-21 Malte S. Kurz

We study the class of semi-Levy driven continuous-time GARCH, denoted by SLD-COGARCH, process. The statistical properties of this process are characterized. We show that the state process of such process can be described by a random…

Probability · Mathematics 2018-12-31 M. Mohammadi , S. Rezakhah , N. Modarresi

We introduce a novel GARCH model that integrates two sources of uncertainty to better capture the rich, multi-component dynamics often observed in the volatility of financial assets. This model provides a quasi closed-form representation of…

Econometrics · Economics 2024-10-21 Luca Vincenzo Ballestra , Enzo D'Innocenzo , Christian Tezza

Vine copulas are flexible dependence models using bivariate copulas as building blocks. If the parameters of the bivariate copulas in the vine copula depend on covariates, one obtains a conditional vine copula. We propose an extension for…

Methodology · Statistics 2024-06-21 David Jobst , Annette Möller , Jürgen Groß

This article presents factor copula approaches to model temporal dependency of non-Gaussian (continuous/discrete) longitudinal data. Factor copula models are canonical vine copulas which explain the underlying dependence structure of a…

Methodology · Statistics 2025-02-18 Subhajit Chattopadhyay

Although stochastic volatility and GARCH (generalized autoregressive conditional heteroscedasticity) models have successfully described the volatility dynamics of univariate asset returns, extending them to the multivariate models with…

Econometrics · Economics 2020-10-09 Yuta Yamauchi , Yasuhiro Omori

The volatility of financial instruments is rarely constant, and usually varies over time. This creates a phenomenon called volatility clustering, where large price movements on one day are followed by similarly large movements on successive…

Statistical Finance · Quantitative Finance 2015-05-08 Gordon J. Ross

We propose a hybrid model of portfolio credit risk where the dynamics of the underlying latent variables is governed by a one factor GARCH process. The distinctive feature of such processes is that the long-term aggregate return…

Pricing of Securities · Quantitative Finance 2010-01-07 Arthur M. Berd , Robert F. Engle , Artem Voronov

As a motivating problem, we aim to study some special aspects of the marginal distributions of the order statistics for exchangeable and (more generally) for minimally stable non-negative random variables $T_{1},...,T_{r}$. In any case, we…

Probability · Mathematics 2021-06-16 Rachele Foschi , Giovanna Nappo , Fabio L. Spizzichino

Copulas have been popular to model dependence for multivariate distributions, but have not been used much in modelling temporal dependence of univariate time series. This paper demonstrates some difficulties with using copulas even for…

Probability · Mathematics 2010-10-11 Andreas N. Lagerås

Gaussian copulas are widely used in the industry to correlate two random variables when there is no prior knowledge about the co-dependence between them. The perturbed Gaussian copula approach allows introducing the skew information of both…

Pricing of Securities · Quantitative Finance 2012-02-10 Alberto Elices , Jean-Pierre Fouque

Finding parametric models that accurately describe the dependence structure of observed data is a central task in the analysis of time series. Classical frequency domain methods provide a popular set of tools for fitting and diagnostics of…

Methodology · Statistics 2019-01-18 Stefan Birr , Tobias Kley , Stanislav Volgushev

The increasing use of vine copulas in high-dimensional settings, where the number of parameters is often of the same order as the sample size, calls for asymptotic theory beyond the traditional fixed-$p$, large-$n$ framework. We establish…

Statistics Theory · Mathematics 2026-05-28 Jana Gauss , Thomas Nagler

Vine copulas are a type of multivariate dependence model, composed of a collection of bivariate copulas that are combined according to a specific underlying graphical structure. Their flexibility and practicality in moderate and high…

Statistics Theory · Mathematics 2022-07-19 Emma S. Simpson , Jennifer L. Wadsworth , Jonathan A. Tawn

We consider the problem of modeling the dependence among many time series. We build high dimensional time-varying copula models by combining pair-copula constructions (PCC) with stochastic autoregressive copula (SCAR) models to capture…

Methodology · Statistics 2012-02-10 Carlos Almeida , Claudia Czado , Hans Manner

We introduce a heterogeneous spatiotemporal GARCH model for geostatistical data or processes on networks, e.g., for modelling and predicting financial return volatility across firms in a latent spatial framework. The model combines…

Statistical Finance · Quantitative Finance 2025-08-29 Atika Aouri , Philipp Otto

This paper derives the analytic form of the $h$-step ahead prediction density of a GARCH(1,1) process under Gaussian innovations, with a possibly asymmetric news impact curve. The contributions of the paper consists both in the derivation…

Statistics Theory · Mathematics 2021-03-05 Karim M. Abadir , Alessandra Luati , Paolo Paruolo