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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

Technical and fundamental analysis are traditional tools used to analyze individual stocks; however, the finance literature has shown that the price movement of each individual stock correlates heavily with other stocks, especially those…

Computational Engineering, Finance, and Science · Computer Science 2019-03-11 Ran Zhao , Yuntian Deng , Mark Dredze , Arun Verma , David Rosenberg , Amanda Stent

A semi-parametric joint Value-at-Risk (VaR) and Expected Shortfall (ES) forecasting framework employing multiple realized measures is developed. The proposed framework extends the realized exponential GARCH model to be semi-parametrically…

Risk Management · Quantitative Finance 2024-12-06 Rangika Peiris , Chao Wang , Richard Gerlach , Minh-Ngoc Tran

Daily ETF risk monitoring can become unreliable when market data quality degrades, market conditions shift, or predictive performance becomes unstable. This paper develops a reliability-aware risk monitoring service for next-day tail-risk…

Risk Management · Quantitative Finance 2026-04-20 Tenghan Zhong , Keyuan Wu

By capturing outliers, volatility clustering, and tail dependence in the asset return distribution, we build a sophisticated model to predict the downside risk of the global financial market. We further develop a dynamic regime switching…

Econometrics · Economics 2025-06-17 Yin Luo , Sheng Wang , Javed Jussa

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

For a given time horizon DT, this article explores the relationship between the realized volatility (the volatility that will occur between t and t+DT), the implied volatility (corresponding to at-the-money option with expiry at t+DT), and…

Pricing of Securities · Quantitative Finance 2009-01-16 Gilles Zumbach

Recent work has emphasized the diversification benefits of combining trend signals across multiple horizons, with the medium-term window-typically six months to one year-long viewed as the "sweet spot" of trend-following. This paper…

Pricing of Securities · Quantitative Finance 2025-10-29 Alban Etienne , Jean-Jacques Ohana , Eric Benhamou , Béatrice Guez , Ethan Setrouk , Thomas Jacquot

Many modern data sets require inference methods that can estimate the shared and individual-specific components of variability in collections of matrices that change over time. Promising methods have been developed to analyze these types of…

Methodology · Statistics 2019-04-30 Arkaprava Roy , Jana Schaich-Borg , David B Dunson

This study attempts to investigate into the structure and features of global equity markets from a time-frequency perspective. An analysis grounded on this framework allows one to capture information from a different dimension, as opposed…

Econometrics · Economics 2020-04-21 Avishek Bhandari

A wide range of approaches for batch processes monitoring can be found in the literature. This kind of process generates a very peculiar data structure, in which successive measurements of many process variables in each batch run are…

Methodology · Statistics 2021-09-03 Batista Nunes de Oliveira , Marcio Valk , Danilo Marcondes Filho

Finance decision-making often relies on in-depth data analysis across various data sources, including financial tables, news articles, stock prices, etc. In this work, we introduce FinTMMBench, the first comprehensive benchmark for…

Computational Finance · Quantitative Finance 2025-08-05 Fengbin Zhu , Junfeng Li , Liangming Pan , Wenjie Wang , Fuli Feng , Chao Wang , Huanbo Luan , Tat-Seng Chua

Estimation of the covariance matrix of asset returns is crucial to portfolio construction. As suggested by economic theories, the correlation structure among assets differs between emerging markets and developed countries. It is therefore…

Methodology · Statistics 2021-09-28 Xin Chen , Dan Yang , Yan Xu , Yin Xia , Dong Wang , Haipeng Shen

High-dimensional panels of time series often arise in finance and macroeconomics, where co-movements within groups of panel components occur. Extracting these groupings from the data provides a coarse-grained description of the complex…

Methodology · Statistics 2025-11-11 Brendan Martin , Francesco Sanna Passino , Mihai Cucuringu , Alessandra Luati

Estimation of high-dimensional covariance matrices in latent factor models is an important topic in many fields and especially in finance. Since the number of financial assets grows while the estimation window length remains of limited…

Statistical Finance · Quantitative Finance 2024-07-08 Lucija Žignić , Stjepan Begušić , Zvonko Kostanjčar

This paper captures irregularities in financial time series data, particularly stock prices, in the presence of COVID-19 shock. We conjectured that jumps and irregularities are embedded in stock data due to the pandemic shock, which brings…

Computational Engineering, Finance, and Science · Computer Science 2023-11-23 Leonard Mushunje , David Allen , Shelton Peiris

Volatility clustering and spillovers are key features of real-world financial time series when there are a lot of cross-sectional financial assets. While network analysis helps connect stocks that are 'similar' or 'correlated', which is…

Methodology · Statistics 2025-10-22 Peiyi Zhou

The dynamic portfolio construction problem requires dynamic modeling of the joint distribution of multivariate stock returns. To achieve this, we propose a dynamic generative factor model which uses random variable transformation as an…

Portfolio Management · Quantitative Finance 2024-01-18 Chuting Sun , Qi Wu , Xing Yan

We investigate the performance of dynamic portfolios constructed using more than 21,000 technical trading rules on 12 categorical and country-specific markets over the 2004-2015 study period, on rolling forward structures of different…

Statistical Finance · Quantitative Finance 2019-06-14 Georgios Sermpinis , Arman Hassanniakalager , Charalampos Stasinakis , Ioannis Psaradellis

Panel data of our interest consist of a moderate or relatively large number of panels, while the panels contain a small number of observations. This paper establishes testing procedures to detect a possible common change in means of the…

Statistics Theory · Mathematics 2016-08-07 Barbora Peštová , Michal Pešta