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Stochastic Variational Inference for GARCH Models

Hanwen Xuan, Luca Maestrini, Feng Chen, Clara Grazian

arXiv 29 Aug 2023 · Statistics — Computation · publishedStatistics and Computing (2023) · 3 citations (OpenAlex)

arXiv:2308.14952 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Stochastic variational inference algorithms are derived for fitting various heteroskedastic time series models. We examine Gaussian, t, and skew-t response GARCH models and fit these using Gaussian variational approximating densities. We implement efficient stochastic gradient ascent procedures based on the use of control variates or the reparameterization trick and demonstrate that the proposed implementations provide a fast and accurate alternative to Markov chain Monte Carlo sampling. Additionally, we present sequential updating versions of our variational algorithms, which are suitable for efficient portfolio construction and dynamic asset allocation.

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68
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134
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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
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8Bishop CM, Nasrabadi NM (2006) Pattern Recognition and Machine Learning, vol 40.73732100%
9Hoffman MD, Blei DM, Wang C, et al (2013) Stochastic variational inference0.73732100%
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Showing the top 10 of 68 scored citations.