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One of the most important features of financial time series data is volatility. There are often structural changes in volatility over time, and an accurate estimation of the volatility of financial time series requires careful…

Methodology · Statistics 2022-10-24 Huaiyu Hu , Ashis Gangopadhyay

In this paper, an application of three GARCH-type models (sGARCH, iGARCH, and tGARCH) with Student t-distribution, Generalized Error distribution (GED), and Normal Inverse Gaussian (NIG) distribution are examined. The new development allows…

Statistical Finance · Quantitative Finance 2019-10-08 Samuel Asante Gyamerah

The study of dependence between random variables is the core of theoretical and applied statistics. Static and dynamic copula models are useful for describing the dependence structure, which is fully encrypted in the copula probability…

Methodology · Statistics 2018-03-20 Dominque Guégan , Matteo Iacopini

We utilize copulas to constitute a unified framework for constructing and optimizing variational proposals in hierarchical Bayesian models. For models with continuous and non-Gaussian hidden variables, we propose a semiparametric and…

Machine Learning · Statistics 2016-05-19 Shaobo Han , Xuejun Liao , David B. Dunson , Lawrence Carin

Regular vine sequences permit the organisation of variables in a random vector along a sequence of trees. Regular vine models have become greatly popular in dependence modelling as a way to combine arbitrary bivariate copulas into…

Methodology · Statistics 2024-06-28 Anna Kiriliouk , Jeongjin Lee , Johan Segers

We propose a model for unbalanced longitudinal data, where the univariate margins can be selected arbitrarily and the dependence structure is described with the help of a D-vine copula. We show that our approach is an extremely flexible…

Methodology · Statistics 2017-05-18 Matthias Killiches , Claudia Czado

Our article considers a Gaussian variational approximation of the posterior density in a high-dimensional state space model. The variational parameters to be optimized are the mean vector and the covariance matrix of the approximation. The…

Methodology · Statistics 2020-02-20 Matias Quiroz , David J. Nott , Robert Kohn

Copulas are essential tools in statistics and probability theory, enabling the study of the dependence structure between random variables independently of their marginal distributions. Among the various types of copulas, Ratio-Type Copulas…

Statistics Theory · Mathematics 2025-05-21 Ziad Adwan , Nicola Sottocornola

Recently there has been an increasing interest in methods that deal with multiple outputs. This has been motivated partly by frameworks like multitask learning, multisensor networks or structured output data. From a Gaussian processes…

Machine Learning · Statistics 2009-11-30 Mauricio A. Álvarez , Neil D. Lawrence

Gaussian processes (GPs) are a good choice for function approximation as they are flexible, robust to over-fitting, and provide well-calibrated predictive uncertainty. Deep Gaussian processes (DGPs) are multi-layer generalisations of GPs,…

Machine Learning · Statistics 2017-11-15 Hugh Salimbeni , Marc Deisenroth

A plethora of static and dynamic models exist to forecast Value-at-Risk and other quantile-related metrics used in financial risk management. Industry practice tends to favour simpler, static models such as historical simulation or its…

Methodology · Statistics 2022-03-11 Carol Alexander , Yang Han

This paper presents a comparative analysis of univariate and multivariate GARCH-family models and machine learning algorithms in modeling and forecasting the volatility of major energy commodities: crude oil, gasoline, heating oil, and…

Econometrics · Economics 2024-05-31 Seulki Chung

In this article we review existing literature on dynamic copulas and then propose an n-copula which varies in time and space. Our approach makes use of stochastic differential equations, and gives rise to a dynamic copula which is able to…

Statistics Theory · Mathematics 2008-12-18 Glenis Crane

This paper introduces a spatiotemporal exponential generalised autoregressive conditional heteroscedasticity (spatiotemporal E-GARCH) model, extending traditional spatiotemporal GARCH models by incorporating asymmetric volatility…

Applications · Statistics 2025-11-10 Ariane Nidelle Meli Chrisko , Philipp Otto , Wolfgang Schmid

We present a novel approach for explaining Gaussian processes (GPs) that can utilize the full analytical covariance structure present in GPs. Our method is based on the popular solution concept of Shapley values extended to stochastic…

Machine Learning · Statistics 2023-05-25 Siu Lun Chau , Krikamol Muandet , Dino Sejdinovic

Graphical models are an important tool in exploring relationships between variables in complex, multivariate data. Methods for learning such graphical models are well developed in the case where all variables are either continuous or…

Machine Learning · Statistics 2024-02-15 Konstantin Göbler , Anne Miloschewski , Mathias Drton , Sach Mukherjee

Simplified vine copulas are flexible tools over standard multivariate distributions for modeling and understanding different dependence properties in high-dimensional data. Their conditional distributions are of utmost importance, from…

Methodology · Statistics 2025-05-26 Ariane Hanebeck , Özge Şahin , Petra Havlíčková , Claudia Czado

The class of index-mixed copulas is introduced and its properties are investigated. Index-mixed copulas are constructed from given base copulas and a random index vector, and show a rather remarkable degree of analytical tractability. The…

Methodology · Statistics 2023-08-10 Klaus Herrmann , Marius Hofert , Nahid Sadr

We present a tractable non-independent increment process which provides a high modeling flexibility. The process lies on an extension of the so-called Harris chains to continuous time being stationary and Feller. We exhibit constructions,…

Applications · Statistics 2016-05-19 Michelle Anzarut , Ramses H. Mena

Fixing the relationship of a set of experimental quantities is a fundamental issue in many scientific disciplines. In the 2D case, the classical approach is to compute the linear correlation coefficient from a scatterplot. This method,…

Methodology · Statistics 2020-10-21 Roberto Vio , Thomas W. Nagler , Paola Andreani