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This paper introduces a unified approach for modeling high-frequency financial data that can accommodate both the continuous-time jump-diffusion and discrete-time realized GARCH model by embedding the discrete realized GARCH structure in…

Methodology · Statistics 2020-06-16 Xinyu Song , Donggyu Kim , Huiling Yuan , Xiangyu Cui , Zhiping Lu , Yong Zhou , Yazhen Wang

We introduce a novel multivariate GARCH model with flexible convolution-t distributions that is applicable in high-dimensional systems. The model is called Cluster GARCH because it can accommodate cluster structures in the conditional…

Econometrics · Economics 2024-06-12 Chen Tong , Peter Reinhard Hansen , Ilya Archakov

In this study, we develop a unified volatility modeling framework that embeds GARCH dynamics directly within recurrent neural networks. We propose two interpretable hybrid architectures, GARCH-GRU and GARCH-LSTM, that integrate the…

Statistical Finance · Quantitative Finance 2025-11-25 Jingyi Wei , Steve Yang , Zhenyu Cui

SVR-GARCH model tends to "backward eavesdrop" when forecasting the financial time series volatility in which case it tends to simply produce the prediction by deviating the previous volatility. Though the SVR-GARCH model has achieved good…

Statistical Finance · Quantitative Finance 2022-06-23 Jun Lu , Shao Yi

In this paper, we develop a hybrid approach to forecasting the volatility and risk of financial instruments by combining common econometric GARCH time series models with deep learning neural networks. For the latter, we employ Gated…

Risk Management · Quantitative Finance 2023-10-03 Jakub Michańków , Łukasz Kwiatkowski , Janusz Morajda

Incomplete covariate vectors are known to be problematic for estimation and inferences on model parameters, but their impact on prediction performance is less understood. We develop an imputation-free method that builds on a random…

Methodology · Statistics 2024-05-31 Matthew J. Heiner , Garritt L. Page , Fernando Andrés Quintana

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

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

Hierarchical clustering (HC) algorithms are generally limited to small data instances due to their runtime costs. Here we mitigate this shortcoming and explore fast HC algorithms based on random projections for single (SLC) and average…

Information Retrieval · Computer Science 2014-01-24 Johannes Schneider , Michail Vlachos

In this paper, we introduce Adaptive Cluster Lasso(ACL) method for variable selection in high dimensional sparse regression models with strongly correlated variables. To handle correlated variables, the concept of clustering or grouping…

Machine Learning · Statistics 2016-03-14 Niharika Gauraha , Swapan K. Parui

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

Local Process Model (LPM) discovery is focused on the mining of a set of process models where each model describes the behavior represented in the event log only partially, i.e. subsets of possible events are taken into account to create…

Machine Learning · Computer Science 2017-12-20 Niek Tax , Natalia Sidorova , Wil M. P. van der Aalst , Reinder Haakma

Large-scale multi-layer networks with large numbers of nodes, edges, and layers arise across various domains, which poses a great computational challenge for the downstream analysis. In this paper, we develop an efficient randomized…

Computation · Statistics 2025-01-10 Wenqing Su , Xiao Guo , Xiangyu Chang , Ying Yang

In this paper we penetrate and extend the notion of local constancy in graphical models that has been introduced by Honorio et al. (2009). We propose Neighborhood-Fused Lasso, a method for model selection in high-dimensional graphical…

Methodology · Statistics 2014-11-03 Apratim Ganguly , Wolfgang Polonik

We here consider the subset simulation method which approaches a failure event using a decreasing sequence of nested intermediate failure events. The method resembles importance sampling, which actively explores a probability space by…

Computation · Statistics 2020-03-16 Kenan Šehić , Mirza Karamehmedović

Local graph clustering is an important machine learning task that aims to find a well-connected cluster near a set of seed nodes. Recent results have revealed that incorporating higher order information significantly enhances the results of…

Social and Information Networks · Computer Science 2021-01-27 Rania Ibrahim , David F. Gleich

As the data size in Machine Learning fields grows exponentially, it is inevitable to accelerate the computation by utilizing the ever-growing large number of available cores provided by high-performance computing hardware. However, existing…

Machine Learning · Computer Science 2021-04-23 Kun Li , Liang Yuan , Yunquan Zhang , Gongwei Chen

Performing analytic of household load curves (LCs) has significant value in predicting individual electricity consumption patterns, and hence facilitate developing demand-response strategy, and finally achieve energy efficiency improvement…

Data Structures and Algorithms · Computer Science 2018-11-27 Yunyou Huang , Jianfeng Zhan , Nana Wang , Chunjie Luo , Lei Wang , Rui Ren

Large-scale applications of Visual Place Recognition (VPR) require computationally efficient approaches. Further, a well-balanced combination of data-based and training-free approaches can decrease the required amount of training data and…

Computer Vision and Pattern Recognition · Computer Science 2024-03-18 Fangming Yuan , Stefan Schubert , Peter Protzel , Peer Neubert

The advantages of sequential Monte Carlo (SMC) are exploited to develop parameter estimation and model selection methods for GARCH (Generalized AutoRegressive Conditional Heteroskedasticity) style models. It provides an alternative method…

Applications · Statistics 2020-03-06 Dan Li , Adam Clements , Christopher Drovandi