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Agents' heterogeneity is recognized as a driver mechanism for the persistence of financial volatility. We focus on the multiplicity of investment strategies' horizons, we embed this concept in a continuous time stochastic volatility…

Statistical Finance · Quantitative Finance 2013-04-04 Danilo Delpini , Giacomo Bormetti

We develop misspecification tests for building additive time-varying (ATV-)GARCH models. In the model, the volatility equation of the GARCH model is augmented by a deterministic time-varying intercept modeled as a linear combination of…

Econometrics · Economics 2025-07-01 Niklas Ahlgren , Alexander Back , Timo Teräsvirta

In this paper, we develop two families of sequential monitoring procedure to (timely) detect changes in a GARCH(1,1) model. Whilst our methodologies can be applied for the general analysis of changepoints in GARCH(1,1) sequences, they are…

Econometrics · Economics 2024-04-30 Lajos Horvath , Lorenzo Trapani , Shixuan Wang

We propose a stochastic process for stock movements that, with just one source of Brownian noise, has an instantaneous volatility that rises from a type of statistical feedback across many time scales. This results in a stationary…

Other Condensed Matter · Physics 2008-12-02 Lisa Borland

Various parametric volatility models for financial data have been developed to incorporate high-frequency realized volatilities and better capture market dynamics. However, because high-frequency trading data are not available during the…

Statistical Finance · Quantitative Finance 2022-06-20 Donggyu Kim , Minseok Shin , Yazhen Wang

We introduce TimeMCL, a method leveraging the Multiple Choice Learning (MCL) paradigm to forecast multiple plausible time series futures. Our approach employs a neural network with multiple heads and utilizes the Winner-Takes-All (WTA) loss…

Machine Learning · Computer Science 2025-08-12 Adrien Cortés , Rémi Rehm , Victor Letzelter

This paper proposes a multiplicative component intraday volatility model. The intraday conditional volatility is expressed as the product of intraday periodic component, intraday stochastic volatility component and daily conditional…

Econometrics · Economics 2021-11-04 Xiufeng Yan

In this paper we consider a fractional stochastic volatility model, that is a model in which the volatility may exhibit a long-range dependent or a rough/antipersistent behavior. We propose a dynamic sequential Monte Carlo methodology that…

Methodology · Statistics 2017-02-28 Alexandra Chronopoulou , Konstantinos Spiliopoulos

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

Rare events such as financial crashes, climate extremes, and biological anomalies are notoriously difficult to model due to their scarcity and heavy-tailed distributions. Classical deep generative models often struggle to capture these rare…

Machine Learning · Computer Science 2025-11-05 M. Z. Haider , M. U. Ghouri , Tayyaba Noreen , M. Salman

This paper considers quantile regression for a wide class of time series models including ARMA models with asymmetric GARCH (AGARCH) errors. The classical mean-variance models are reinterpreted as conditional location-scale models so that…

Methodology · Statistics 2015-03-03 Jungsik Noh , Sangyeol Lee

In an asset return series there is a conditional asymmetric dependence between current return and past volatility depending on the current return's sign. To take into account the conditional asymmetry, we introduce new models for asset…

Statistical Finance · Quantitative Finance 2013-11-21 Geon Ho Choe , Kyungsub Lee

We examine the relationship between trading volumes, number of transactions, and volatility using daily stock data of the Tokyo Stock Exchange. Following the mixture of distributions hypothesis, we use trading volumes and the number of…

Statistical Finance · Quantitative Finance 2018-01-19 Tetsuya Takaishi , Ting Ting Chen

In the realm of time series analysis, tackling the phenomenon of concept drift poses a significant challenge. Concept drift -- characterized by the evolving statistical properties of time series data, affects the reliability and accuracy of…

Machine Learning · Computer Science 2025-02-03 Kunpeng Xu , Lifei Chen , Shengrui Wang

Recent lightweight MLP-based models have achieved strong performance in time series forecasting by capturing stable trends and seasonal patterns. However, their effectiveness hinges on an implicit assumption of local stationarity…

Machine Learning · Computer Science 2026-01-29 Zhiyu Chen , Minhao Liu , Yanru Zhang

We propose to analyse the statistical properties of a sequence of vectors using the spectrum of the associated Gram matrix. Such sequences arise e.g. by the repeated action of a deterministic kicked quantum dynamics on an initial condition…

Mathematical Physics · Physics 2007-05-23 Mieke De Cock , Mark Fannes , Pascal Spincemaille

Several phenomena are available representing market activity: volumes, number of trades, durations between trades or quotes, volatility - however measured - all share the feature to be represented as positive valued time series. When…

Statistical Finance · Quantitative Finance 2021-07-14 Fabrizio Cipollini , Giampiero M. Gallo

In this paper, we present a reproducible benchmarking framework that systematically compares QML models with architecture-matched classical counterparts across three financial tasks: (i) directional return prediction on U.S. and Turkish…

Machine Learning · Computer Science 2026-01-08 Rehan Ahmad , Muhammad Kashif , Nouhaila Innan , Muhammad Shafique

A Bayesian procedure is developed for multivariate stochastic volatility, using state space models. An autoregressive model for the log-returns is employed. We generalize the inverted Wishart distribution to allow for different correlation…

Statistical Finance · Quantitative Finance 2008-12-02 K. Triantafyllopoulos

We explore the efficacy of the novel use of parametrised quantum circuits (PQCs) as quantum neural networks (QNNs) for forecasting time series signals with simulated quantum forward propagation. The temporal signals consist of several…

Quantum Physics · Physics 2022-02-02 Dimitrios Emmanoulopoulos , Sofija Dimoska