Statistical Methods in Finance 2019

Dec 16 - 21, 2019
















Abstract

Stochastic volatility generated by Product autoregressive models

by N Balakrishna, Statistics, Cochin University of Science And Technology

This paper analyses the stochastic volatility models induced by non-negative Markovsequences generated by product autoregressive models. In particular, a stationary se-quence of generalized gamma random variables is proposed to generate volatilities.The method of combined estimating functions is employed for parameter estimation.Simulation studies and real data analysis are provided to demonstrate the utility ofthe model.