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Conditional Volatility Model Selection and Comparison: Ex-ample from Stock Markets

The result's identifiers

  • Result code in IS VaVaI

    <a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F14%3A86091664" target="_blank" >RIV/61989100:27510/14:86091664 - isvavai.cz</a>

  • Result on the web

  • DOI - Digital Object Identifier

Alternative languages

  • Result language

    angličtina

  • Original language name

    Conditional Volatility Model Selection and Comparison: Ex-ample from Stock Markets

  • Original language description

    Model selection and model comparison of the second moment of a given random variable has been widely discussed topic in financial econometrics for many years. In this paper, we focus on model comparison and model selection taking in consideration univariate conditional volatility models. The aim of this paper is to provide comparison of linear and nonlinear ARCH family models based on out-of-sample forecast using two different approaches. In first approach, alternative volatility models are compared bydifferent loss functions based directly on variance forecast and respective Diebold-Mariano type tests. The comparison of models based on Diebold-Mariano test is limited since it allows pairwise comparison only. Therefore, the model confidence set (MCS)technique will be utilized as well. The second approach is relatively new and includes indirect evaluation methods which consider using of alternative variance forecasts, in particular a VaR framework. In order to illustrate application o

  • Czech name

  • Czech description

Classification

  • Type

    D - Article in proceedings

  • CEP classification

    AH - Economics

  • OECD FORD branch

Result continuities

  • Project

    Result was created during the realization of more than one project. More information in the Projects tab.

  • Continuities

    P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Others

  • Publication year

    2014

  • Confidentiality

    S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Data specific for result type

  • Article name in the collection

    Mathematical Methods in Economics, MME 2014 : 32nd international conference : September 10-12, 2014, Olomouc, Czech Republic : conference proceedings

  • ISBN

    978-80-244-4209-9

  • ISSN

  • e-ISSN

  • Number of pages

    6

  • Pages from-to

    873-878

  • Publisher name

    Palacký University

  • Place of publication

    Olomouc

  • Event location

    Olomouc

  • Event date

    Sep 10, 2014

  • Type of event by nationality

    EUR - Evropská akce

  • UT code for WoS article