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Orthogonal Generalized Autoregressive Conditional Heteroskedasticity model (OGARCH) is widely used in finance industry to produce volatility and correlation forecasts. We show that the classic OGARCH model, nevertheless, tends to be too…

Methodology · Statistics 2019-09-27 Yufan Li

We employ single-qubit quantum circuit learning (QCL) to model the dynamics of volatility time series. To assess its effectiveness, we generate synthetic data using the Rational GARCH model, which is specifically designed to capture…

Computational Finance · Quantitative Finance 2026-04-29 Tetsuya Takaishi

In this paper, we show that the recent integration of statistical models with deep recurrent neural networks provides a new way of formulating volatility (the degree of variation of time series) models that have been widely used in time…

Machine Learning · Computer Science 2018-12-06 Rui Luo , Weinan Zhang , Xiaojun Xu , Jun Wang

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

Generalized autoregressive conditional heteroscedasticity (GARCH) models have long been considered as one of the most successful families of approaches for volatility modeling in financial return series. In this paper, we propose an…

Machine Learning · Computer Science 2013-01-29 Emmanouil A. Platanios , Sotirios P. Chatzis

Range-measured return contains more information than the traditional scalar-valued return. In this paper, we propose to model the [low, high] price range as a random interval and suggest an interval-valued GARCH (Int-GARCH) model for the…

Methodology · Statistics 2019-01-11 Yan Sun , Guanghua Lian , Zudi Lu , Jennifer Loveland , Isaac Blackhurst

Here, we have analysed a GARCH(1,1) model with the aim to fit higher order moments for different companies' stock prices. When we assume a gaussian conditional distribution, we fail to capture any empirical data when fitting the first three…

Econometrics · Economics 2021-03-31 Luke De Clerk , Sergey Savel'ev

This paper proposes a spatial threshold GARCH-type model for dynamic spatio-temporal integer-valued data with network structure. The proposed model can simplify the parameterization by using network structure in data, and can capture the…

Methodology · Statistics 2024-09-19 Yue Pan , Jiazhu Pan

We provide a simple method to estimate the parameters of multivariate stochastic volatility models with latent factor structures. These models are very useful as they alleviate the standard curse of dimensionality, allowing the number of…

Econometrics · Economics 2023-02-15 Giorgio Calzolari , Roxana Halbleib , Christian Mücher

Various spatiotemporal and network GARCH models have recently been proposed to capture volatility interactions, such as the transmission of market risk across financial networks. These approaches rely heavily on the specification of the…

Applications · Statistics 2026-03-03 Ariane N. Meli Chrisko , Jessie Li , Philipp Otto , Wolfgang Schmid

In this paper, we analyze the time-series of minute price returns on the Bitcoin market through the statistical models of generalized autoregressive conditional heteroskedasticity (GARCH) family. Several mathematical models have been…

Statistical Finance · Quantitative Finance 2021-02-01 Irena Barjašić , Nino Antulov-Fantulin

This paper considers a semiparametric generalized autoregressive conditional heteroskedasticity (S-GARCH) model. For this model, we first estimate the time-varying long run component for unconditional variance by the kernel estimator, and…

Methodology · Statistics 2020-10-05 Feiyu Jiang , Dong Li , Ke Zhu

We propose a continuous-time Markov-switching generalized autoregressive conditional heteroskedasticity (COMS-GARCH) process for handling irregularly spaced time series (TS) with multiple volatilities states. We employ a Gibbs sampler in…

Methodology · Statistics 2020-12-15 Yinan Li , Fang Liu

This paper presents a novel dynamic network autoregressive conditional heteroscedasticity (ARCH) model based on spatiotemporal ARCH models to forecast volatility in the US stock market. To improve the forecasting accuracy, the model…

Applications · Statistics 2023-03-21 Raffaele Mattera , Philipp Otto

This paper considers the statistical inference of the class of asymmetric power-transformed $\operatorname{GARCH}(1,1)$ models in presence of possible explosiveness. We study the explosive behavior of volatility when the strict stationarity…

Statistics Theory · Mathematics 2013-10-31 Christian Francq , Jean-Michel Zakoïan

We propose a Bayesian non-parametric approach for modeling the distribution of multiple returns. In particular, we use an asymmetric dynamic conditional correlation (ADCC) model to estimate the time-varying correlations of financial returns…

Portfolio Management · Quantitative Finance 2018-05-10 Audrone Virbickaite , M. Concepción Ausín , Pedro Galeano

Volatility asymmetry is a hot topic in high-frequency financial market. In this paper, we propose a new econometric model, which could describe volatility asymmetry based on high-frequency historical data and low-frequency historical data.…

Methodology · Statistics 2021-01-15 Huiling Yuan , Yong Zhou , Lu Xu , Yun Lei Sun , Xiang Yu Cui

This study addresses the computational challenges of forecasting volatility in high-dimensional commodity markets. Building on the Network log-ARCH framework, we introduce a novel class of network topologies from GARCH-informed correlation…

Econometrics · Economics 2026-02-23 Fayçal Djebari , Kahina Mehidi , Khelifa Mazouz , Philipp Otto

The ARCH process (R. F. Engle, 1982) constitutes a paradigmatic generator of stochastic time series with time-dependent variance like it appears on a wide broad of systems besides economics in which ARCH was born. Although the ARCH process…

Data Analysis, Statistics and Probability · Physics 2008-12-02 Silvio M. Duarte Queiros

HYGARCH model is basically used to model long-range dependence in volatility. We propose Markov switch smooth-transition HYGARCH model, where the volatility in each state is a time-dependent convex combination of GARCH and FIGARCH. This…

Statistics Theory · Mathematics 2018-03-05 Ferdous Mohammadi Basatini , Saeid Rezakhah