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In this paper we solve the discrete time mean-variance hedging problem when asset returns follow a multivariate autoregressive hidden Markov model. Time dependent volatility and serial dependence are well established properties of financial…

Pricing of Securities · Quantitative Finance 2018-02-13 Massimo Caccia , Bruno Rémillard

The task of modeling claim severities is addressed when data is not consistent with the classical regression assumptions. This framework is common in several lines of business within insurance and reinsurance, where catastrophic losses or…

Statistics Theory · Mathematics 2022-04-01 Martin Bladt , Jorge Yslas

We propose a causal hidden Markov model to achieve robust prediction of irreversible disease at an early stage, which is safety-critical and vital for medical treatment in early stages. Specifically, we introduce the hidden variables which…

Computer Vision and Pattern Recognition · Computer Science 2021-03-31 Jing Li , Botong Wu , Xinwei Sun , Yizhou Wang

Markov Chains with variable length are useful stochastic models for data compression that avoid the curse of dimensionality faced by that full Markov Chains. In this paper we introduce a Variable Length Markov Chain whose transition…

Methodology · Statistics 2020-01-01 Adriano Zanin Zambom , Seonjin Kim , Nancy Lopes Garcia

Motivated by applications in movement ecology, in this paper I propose a new class of integrated continuous-time hidden Markov models in which each observation depends on the underlying state of the process over the whole interval since the…

Methodology · Statistics 2019-10-01 Paul G Blackwell

The identification of factors associated with mental and behavioral disorders in early childhood is critical both for psychopathology research and the support of primary health care practices. Motivated by the Millennium Cohort Study, in…

Methodology · Statistics 2021-09-15 Luca Merlo , Lea Petrella , Nikos Tzavidis

A workload analysis technique is presented that processes data from operation type traces and creates a Hidden Markov Model (HMM) to represent the workload that generated those traces. The HMM can be used to create representative traces for…

Performance · Computer Science 2012-09-18 P. G. Harrison , S. K. Harrison , N. M. Patel , S. Zertal

We propose a copula-based extension of the hidden Markov model (HMM) which applies when the observations recorded at each time in the sample are multivariate. The joint model produced by the copula extension allows decoding of the hidden…

Methodology · Statistics 2024-05-13 Robert Zimmerman , Radu V. Craiu , Vianey Leos-Barajas

The widespread adoption of mobile and wearable sensing technologies has enabled continuous and personalized monitoring of affect, mood disorders, and stress. When combined with ecological self-report questionnaires, these systems offer a…

Machine Learning · Computer Science 2025-09-03 Louis Simon , Mohamed Chetouani

This research deals with the estimation and imputation of missing data in longitudinal models with a Poisson response variable inflated with zeros. A methodology is proposed that is based on the use of maximum likelihood, assuming that data…

Methodology · Statistics 2024-09-18 D. S. Martinez-Lobo , O. O. Melo , N. A. Cruz

A penalized maximum likelihood estimation approach is proposed for discrete-time hidden Markov models where covariates affect the observed responses and serial dependence is considered. The proposed penalized maximum likelihood method…

Methodology · Statistics 2025-07-04 Luca Brusa , Fulvia Pennoni , Francesco Bartolucci , Romina Peruilh Bagolini

Systemic risk measures have been shown to be predictive of financial crises and declines in real activity. Thus, forecasting them is of major importance in finance and economics. In this paper, we propose a new forecasting method for…

Methodology · Statistics 2025-04-23 Yannick Hoga

In this paper, we consider statistical estimation of time-inhomogeneous aggregate Markov models. Unaggregated models, which corresponds to Markov chains, are commonly used in multi-state life insurance to model the biometric states of an…

Statistics Theory · Mathematics 2023-08-11 Jamaal Ahmad , Mogens Bladt

We introduce a restricted latent class exploratory model for longitudinal data with ordinal attributes and respondent-specific covariates. Responses follow a time inhomogeneous hidden Markov model where the probability of a respondent's…

Methodology · Statistics 2026-03-11 Eric Alan Wayman , Steven Andrew Culpepper , Jeff Douglas , Jesse Bowers

We consider Markov models of stochastic processes where the next-step conditional distribution is defined by a kernel density estimator (KDE), similar to Markov forecast densities and certain time-series bootstrap schemes. The KDE Markov…

Machine Learning · Computer Science 2018-07-31 Gustav Eje Henter , Arne Leijon , W. Bastiaan Kleijn

Hidden Markov models (HMMs) and partially observable Markov decision processes (POMDPs) form a useful tool for modeling dynamical systems. They are particularly useful for representing environments such as road networks and office…

Artificial Intelligence · Computer Science 2013-01-30 Hagit Shatkay

Analysis of multivariate healthcare time series data is inherently challenging: irregular sampling, noisy and missing values, and heterogeneous patient groups with different dynamics violating exchangeability. In addition, interpretability…

Machine Learning · Computer Science 2023-11-15 Onur Poyraz , Pekka Marttinen

We study the challenge of predicting the time at which a competitor product, such as a novel high-capacity EV battery or a new car model, will be available to customers; as new information is obtained, this time-to-market estimate is…

Machine Learning · Computer Science 2024-11-08 Nandakishore Santhi , Stephan Eidenbenz , Brian Key , George Tompkins

Recommender systems are widely used for suggesting books, education materials, and products to users by exploring their behaviors. In reality, users' preferences often change over time, leading to studies on time-dependent recommender…

Information Retrieval · Computer Science 2024-12-17 Haidong Zhang , Wancheng Ni , Xin Li , Yiping Yang

Herein, the Hidden Markov Model is expanded to allow for Markov chain observations. In particular, the observations are assumed to be a Markov chain whose one step transition probabilities depend upon the hidden Markov chain. An…

Machine Learning · Statistics 2023-04-18 Michael A. Kouritzin