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In this study, we propose a novel model called the Markov-switching dynamic matrix factor (Ms-DMF) model, which serves the dual purpose of structural interpretation and prediction for high-dimensional matrix time series. When estimating the…

Methodology · Statistics 2025-12-24 Chaofeng Yuan , Sainan Xu , Xingbing Kong , Jianhua Guo

This study introduces a dynamic investment framework to enhance portfolio management in volatile markets, offering clear advantages over traditional static strategies. Evaluates four conventional approaches : equal weighted, minimum…

Portfolio Management · Quantitative Finance 2025-04-07 Jinhui Li , Wenjia Xie , Luis Seco

Temporal-network models have provided key insights into how time-varying connectivity shapes dynamical processes such as spreading. Among them, the activity-driven model is a widely used, analytically tractable benchmark. Yet many temporal…

Physics and Society · Physics 2025-11-20 Zsófia Simon , Jari Saramäki

It is common for long financial time series to exhibit gradual change in the unconditional volatility. We propose a new model that captures this type of nonstationarity in a parsimonious way. The model augments the volatility equation of a…

Econometrics · Economics 2024-10-15 Niklas Ahlgren , Alexander Back , Timo Teräsvirta

We study, both analytically and numerically, an ARCH-like, multiscale model of volatility, which assumes that the volatility is governed by the observed past price changes on different time scales. With a power-law distribution of time…

Physics and Society · Physics 2008-12-02 L. Borland , J. -Ph. Bouchaud

We discuss Bayesian forecasting of increasingly high-dimensional time series, a key area of application of stochastic dynamic models in the financial industry and allied areas of business. Novel state-space models characterizing sparse…

Methodology · Statistics 2022-06-07 Zoey Yi Zhao , Meng Xie , Mike West

Spatial networks, in which nodes and edges are embedded in space, play a vital role in the study of complex systems. For example, many social networks attach geo-location information to each user, allowing the study of not only topological…

Social and Information Networks · Computer Science 2014-03-05 Nicholas D. Larusso , Brian E. Ruttenberg , Ambuj Singh

Multivariate stochastic volatility models with skew distributions are proposed. Exploiting Cholesky stochastic volatility modeling, univariate stochastic volatility processes with leverage effect and generalized hyperbolic skew…

Methodology · Statistics 2012-12-21 Jouchi Nakajima

Many economic environments involve units linked by a network. I develop an econometric framework that derives the dynamics of cross-sectional variables from the lagged innovation transmission along bilateral links and that can accommodate…

Econometrics · Economics 2026-01-23 Marko Mlikota

Volatility forecasting is essential for risk management and decision-making in financial markets. Traditional models like Generalized Autoregressive Conditional Heteroskedasticity (GARCH) effectively capture volatility clustering but often…

Mathematical Finance · Quantitative Finance 2024-10-23 Pulikandala Nithish Kumar , Nneka Umeorah , Alex Alochukwu

This paper is a step towards a systematic theory of the transitivity (clustering) phenomenon in random networks. A static framework is used, with adjacency matrix playing the role of the dynamical variable. Hence, our model is a matrix…

Condensed Matter · Physics 2009-11-10 Z. Burda , J. Jurkiewicz , A. Krzywicki

This paper introduces a Bayesian framework that combines Markov chain Monte Carlo (MCMC) sampling, dimensionality reduction, and neural density estimation to efficiently handle inverse problems that (i) must be solved multiple times, and…

Computational Engineering, Finance, and Science · Computer Science 2026-02-24 Giacomo Bottacini , Matteo Torzoni , Andrea Manzoni

In many applications, survey data are collected from different survey centers in different regions. It happens that in some circumstances, response variables are completely observed while the covariates have missing values. In this paper,…

Methodology · Statistics 2020-07-07 Zhihua Ma , Guanyu Hu , Ming-Hui Chen

This paper offers a new method for estimation and forecasting of the volatility of financial time series when the stationarity assumption is violated. Our general local parametric approach particularly applies to general varying-coefficient…

Methodology · Statistics 2009-03-27 P. Čížek , W. Härdle , V. Spokoiny

Dynamic linear regression models forecast the values of a time series based on a linear combination of a set of exogenous time series while incorporating a time series process for the error term. This error process is often assumed to…

Methodology · Statistics 2026-04-02 Thomas Goodwin , Matias Quiroz , Robert Kohn

We propose a scalable temporal latent space model for link prediction in dynamic social networks, where the goal is to predict links over time based on a sequence of previous graph snapshots. The model assumes that each user lies in an…

Social and Information Networks · Computer Science 2016-07-26 Linhong Zhu , Dong Guo , Junming Yin , Greg Ver Steeg , Aram Galstyan

In this paper we study the spatial and temporal behaviour of the dynamic processes in porous elastic mixtures. For the spatial behaviour we use the time-weighted surface power function method in order to obtain a more precisely…

Mathematical Physics · Physics 2016-09-07 M. Ciarletta , G. Iovane , F. Passarella

In multi-state life insurance, an adequate balance between analytic tractability, computational efficiency, and statistical flexibility is of great importance. This might explain the popularity of Markov chain modelling, where matrix…

Probability · Mathematics 2024-04-25 Jamaal Ahmad , Mogens Bladt , Christian Furrer

Motivated by the challenge of analyzing the dynamics of weekly sea border crossings in the Mediterranean (2015-2025) and the English Channel (2018-2025), we develop a Bayesian dynamic framework for modeling heteroskedastic count time…

Applications · Statistics 2026-03-23 Gregor Zens , Jakub Bijak

Economic and financial models -- such as vector autoregressions, local projections, and multivariate volatility models -- feature complex dynamic interactions and spillovers across many time series. These models can be integrated into a…

Econometrics · Economics 2025-03-10 Jinyuan Chang , Qiao Hu , Zhentao Shi , Jia Zhang