EconBase
← All papers

The Fourier-Malliavin Volatility (FMVol) MATLAB library

Simona Sanfelici, Giacomo Toscano

arXiv 31 Jan 2024 · Statistics — Computation · publishedMathematics and Computers in Simulation (2024) · 4 citations (OpenAlex)

arXiv:2402.00172 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper presents the Fourier-Malliavin Volatility (FMVol) estimation library for MATLAB. This library includes functions that implement Fourier- Malliavin estimators (see Malliavin and Mancino (2002, 2009)) of the volatility and co-volatility of continuous stochastic volatility processes and second-order quantities, like the quarticity (the squared volatility), the volatility of volatility and the leverage (the covariance between changes in the process and changes in its volatility). The Fourier-Malliavin method is fully non-parametric, does not require equally-spaced observations and is robust to measurement errors, or noise, without any preliminary bias correction or pre-treatment of the observations. Further, in its multivariate version, it is intrinsically robust to irregular and asynchronous sampling. Although originally introduced for a specific application in financial econometrics, namely the estimation of asset volatilities, the Fourier-Malliavin method is a general method that can be applied whenever one is interested in reconstructing the latent volatility and second-order quantities of a continuous stochastic volatility process from discrete observations.

Citation extraction

27
references
50
in-text mentions
27
distinct cited
10
self-citations
7,952
main-text words

appendix boundary found by appendix_titled_section at “Appendix. Bivariate data simulation” · 97% of the source is main text. Read the extracted text to check this.

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
1Malliavin, P. and Mancino, M (2009) A fourier transform method for nonparametric estimation of volatility1.00064100%
2Malliavin, P. and Mancino, M (2002) Fourier series method for measurement of multivariate volatilities1.00053100%
3Mancino, M. and Sanfelici, S (2008) Robustness of fourier estimator of integrated volatility in the presence of microstructure noise self0.81142100%
4Mancino, M., Mariotti, T., and Toscano, G (2022) Asymptotic normality for the spot volatility fourier estimator in the presence of microstructure noise contamination self0.81142100%
5Malliavin, P (1995) Integration and probability0.73732100%
6Mancino, M. and Sanfelici, S (2011) Estimating covariance via fourier method in the presence of asynchronous trading and microstructure noise self0.64422100%
7Toscano, G., Livieri, G., Mancino, M., and Marmi, S (2024) Volatility of volatility estimation: central limit theorems for the fourier transform estimator and empirical study of the daily… self0.64422100%
8Heston, S (1993) A closed-form solution for options with stochastic volatility with applications to bond and currency options0.5112250%
9Curato, I (2019) Estimation of the stochastic leverage effect using the fourier transform method0.51121100%
10Livieri, G., Mancino, M., and Marmi, S (2019) Asymptotic results for the fourier estimator of the integrated quarticity0.51121100%

Showing the top 10 of 27 scored citations.