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Related papers: A Heterogeneous Spatiotemporal GARCH Model: A Pred…

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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

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

Heteroskedasticity is a common feature of financial time series and is commonly addressed in the model building process through the use of ARCH and GARCH processes. More recently multivariate variants of these processes have been in the…

Methodology · Statistics 2015-12-18 Alexander Aue , Lajos Horvath , Daniel Pellatt

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

Volatility clustering is an important characteristic that has a significant effect on the behavior of stock markets. However, designing robust models for accurate prediction of future volatilities of stock prices is a very challenging…

Computational Finance · Quantitative Finance 2021-10-11 Jaydip Sen , Sidra Mehtab , Abhishek Dutta

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, 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

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

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

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

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

Volatility clustering is a crucial property that has a substantial impact on stock market patterns. Nonetheless, developing robust models for accurately predicting future stock price volatility is a difficult research topic. For predicting…

Computational Finance · Quantitative Finance 2025-05-20 Ananda Chatterjee , Hrisav Bhowmick , Jaydip Sen

Estimating conditional quantiles of financial time series is essential for risk management and many other applications in finance. It is well-known that financial time series display conditional heteroscedasticity. Among the large number of…

Methodology · Statistics 2016-10-25 Yao Zheng , Qianqian Zhu , Guodong Li , Zhijie Xiao

In this paper, we introduce a new spatial model that incorporates heteroscedastic variance depending on neighboring locations. The proposed process is regarded as the spatial equivalent to the temporal autoregressive conditional…

Statistics Theory · Mathematics 2020-10-20 Philipp Otto , Wolfgang Schmid , Robert Garthoff

Geo-referenced data are characterized by an inherent spatial dependence due to the geographical proximity. In this paper, we introduce a dynamic spatiotemporal autoregressive conditional heteroscedasticity (ARCH) process to describe the…

Methodology · Statistics 2023-10-24 Philipp Otto , Osman Doğan , Süleyman Taşpınar

This paper offers a new approach for estimating and forecasting the volatility of financial time series. No assumption is made about the parametric form of the processes. On the contrary, we only suppose that the volatility can be…

Statistics Theory · Mathematics 2007-06-13 Danilo Mercurio , Vladimir Spokoiny

Predicting the S&P 500 index volatility is crucial for investors and financial analysts as it helps assess market risk and make informed investment decisions. Volatility represents the level of uncertainty or risk related to the size of…

Trading and Market Microstructure · Quantitative Finance 2024-07-25 Natalia Roszyk , Robert Ślepaczuk

The discrete-time GARCH methodology which has had such a profound influence on the modelling of heteroscedasticity in time series is intuitively well motivated in capturing many `stylized facts' concerning financial series, and is now…

Statistical Finance · Quantitative Finance 2008-12-18 Ross A. Maller , Gernot Müller , Alex Szimayer

GARCH-type time series (characterized by Generalized Autoregressive Conditional Heteroskedasticity) exhibit pronounced volatility, autocorrelation, and heteroskedasticity. To address these challenges and enhance predictive accuracy, this…

Systems and Control · Electrical Eng. & Systems 2025-05-28 Hongpei Shao , Da-Qing Zhang , Feilong Lu

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