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Multivariate Fractional Components Analysis

Tobias Hartl, Roland Weigand

arXiv 21 Dec 2018 · Econometrics · publishedJournal of Financial Econometrics (2021) · 1 citations (OpenAlex)

arXiv:1812.09149 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We propose a setup for fractionally cointegrated time series which is formulated in terms of latent integrated and short-memory components. It accommodates nonstationary processes with different fractional orders and cointegration of different strengths and is applicable in high-dimensional settings. In an application to realized covariance matrices, we find that orthogonal short- and long-memory components provide a reasonable fit and competitive out-of-sample performance compared to several competing methods.

Citation extraction

64
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Hualde \ Robinson (2010) Semiparametric inference in multivariate fractionally cointegrated systems, Journal of Econometrics 157(2): 492–5111.00063100%
2Matteson \ Tsay (2011) Dynamic orthogonal components for multivariate time series, Journal of the American Statistical Association 106(496): 1450–14631.00053100%
3Pan \ Yao (2008) Modelling multiple time series via common factors, Biometrika 95(2): 365–3791.00053100%
4Johansen (2008) A representation theory for a class of vector autoregressive models for fractional processes, Econometric Theory 24(3): 651–6760.9619389%
5Hualde (2009) Consistent estimation of cointegrating subspaces0.92843100%
6Johansen \ Nielsen (2012) Likelihood inference for a fractionally cointegrated vector autoregressive model, Econometrica 80(6): 266727320.84333100%
7Weigand (2014) Matrix Box-Cox models for multivariate realized volatility, University of Regensburg Working Papers in Business, Economics and M… self0.8226283%
8Chiriac \ Voev (2011) Modelling and forecasting multivariate realized volatility, Journal of Applied Econometrics 26(6): 922–9470.7374275%
9Avarucci \ Velasco (2009) A Wald test for the cointegration rank in nonstationary fractional systems, Journal of Econometrics 151(2): 178 – 1890.73732100%
10Bauer \ Wagner (2012) A state space canonical form for unit root processes, Econometric Theory 28(6): 131313490.64441100%

Showing the top 10 of 64 scored citations.