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In extracting time series data from various sources, it is inevitable to compile variables measured at varying frequencies as this is often dependent on the source. Modeling from these data can be facilitated by aggregating high frequency…

Methodology · Statistics 2025-03-05 Jetrei Benedick R. Benito , Joseph Ryan G. Lansangan , Erniel B. Barrios

In an environment of increasingly volatile financial markets, the accurate estimation of risk remains a major challenge. Traditional econometric models, such as GARCH and its variants, are based on assumptions that are often too rigid to…

Artificial Intelligence · Computer Science 2025-08-19 Fredy Pokou , Jules Sadefo Kamdem , François Benhmad

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

With the increasing volume of high-frequency data in the information age, both challenges and opportunities arise in the prediction of stock volatility. On one hand, the outcome of prediction using tradition method combining stock technical…

Statistical Finance · Quantitative Finance 2023-09-29 Wenting Liu , Zhaozhong Gui , Guilin Jiang , Lihua Tang , Lichun Zhou , Wan Leng , Xulong Zhang , Yujiang Liu

This paper proposes a novel graphical model, termed the spatial dependence graph model, which captures the global dependence structure of different events that occur randomly in space. In the spatial dependence graph model, the edge set is…

Methodology · Statistics 2016-07-26 Matthias Eckardt

We consider the well-studied problem of predicting the time-varying covariance matrix of a vector of financial returns. Popular methods range from simple predictors like rolling window or exponentially weighted moving average (EWMA) to more…

Econometrics · Economics 2023-11-27 Kasper Johansson , Mehmet Giray Ogut , Markus Pelger , Thomas Schmelzer , Stephen Boyd

Accurately predicting stock market movements remains a formidable challenge due to the inherent volatility and complex interdependencies among stocks. Although multi-scale Graph Neural Networks (GNNs) hold potential for modeling these…

Machine Learning · Computer Science 2025-11-04 Xiaosha Xue , Peibo Duan , Zhipeng Liu , Qi Chu , Changsheng Zhang , Bin zhang

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

Volatility for financial assets returns can be used to gauge the risk for financial market. We propose a deep stochastic volatility model (DSVM) based on the framework of deep latent variable models. It uses flexible deep learning models to…

Machine Learning · Computer Science 2021-02-26 Xiuqin Xu , Ying Chen

Low-frequency historical data, high-frequency historical data and option data are three major sources, which can be used to forecast the underlying security's volatility. In this paper, we propose two econometric models, which integrate…

Statistical Finance · Quantitative Finance 2019-07-08 Huiling Yuan , Yong Zhou , Zhiyuan Zhang , Xiangyu Cui

This paper introduces a novel multivariate volatility modeling framework, named Long Short-Term Memory enhanced BEKK (LSTM-BEKK), that integrates deep learning into multivariate GARCH processes. By combining the flexibility of recurrent…

Computational Finance · Quantitative Finance 2025-06-04 Haoyuan Wang , Chen Liu , Minh-Ngoc Tran , Chao Wang

In the realm of applications where data dynamically evolves across spatial and temporal dimensions, Graph Neural Networks (GNNs) are often complemented by sequence modeling architectures, such as RNNs and transformers, to effectively model…

Machine Learning · Computer Science 2024-09-02 Osama Ahmad , Omer Abdul Jalil , Usman Nazir , Murtaza Taj

In this work we propose a novel approach for modeling spatio-temporal data characterized by group structures. In particular, we extend classical mixed effect regression models by introducing a space-time nonparametric component, regularized…

Methodology · Statistics 2025-11-18 Marco F. De Sanctis , Eleonora Arnone , Francesca Ieva , Laura M. Sangalli

We develop a non-parametric multivariate time series model that remains agnostic on the precise relationship between a (possibly) large set of macroeconomic time series and their lagged values. The main building block of our model is a…

Econometrics · Economics 2022-11-07 Niko Hauzenberger , Florian Huber , Massimiliano Marcellino , Nico Petz

Price range contains important information about the asset volatility, and has long been considered an important indicator for it. In this paper, we propose to jointly model the [low, high] price range as a random interval and introduce an…

Methodology · Statistics 2015-02-18 Yan Sun , Jennifer Loveland , Isaac Blackhurst

Sociotechnological and geospatial processes exhibit time varying structure that make insight discovery challenging. This paper proposes a new statistical model for such systems, modeled as dynamic networks, to address this challenge. It…

Social and Information Networks · Computer Science 2017-06-27 Jace Robinson , Derek Doran

The accurate prediction of time-changing variances is an important task in the modeling of financial data. Standard econometric models are often limited as they assume rigid functional relationships for the variances. Moreover, function…

Methodology · Statistics 2014-02-14 Yue Wu , Jose Miguel Hernandez Lobato , Zoubin Ghahramani

This paper proposes a hybrid methodology to improve the approximation of SABR (Stochastic Alpha Beta Rho) implied volatility by combining analytical structure with machine learning. The approach augments the neural-network input…

Computational Finance · Quantitative Finance 2026-05-08 Adil Reghai , Lama Tarsissi , Gérard Biau , Alex Lipton

Due to spatial dependence -- often characterized as complex and non-linear -- model misspecification is a prevalent and critical issue in spatial data analysis and prediction. As the data, and thus model performance, is heterogeneous,…

We introduce Markov Random Geometric Graphs (MRGGs), a growth model for temporal dynamic networks. It is based on a Markovian latent space dynamic: consecutive latent points are sampled on the Euclidean Sphere using an unknown Markov…

Machine Learning · Computer Science 2022-03-10 Quentin Duchemin , Yohann de Castro