ARCHModels.jl: Estimating ARCH Models in Julia

This paper introduces ARCHModels.jl, a package for the Julia programming language that implements a number of univariate and multivariate autoregressive conditional heteroskedasticity models. This model class is the workhorse tool for modeling the conditional volatility of financial assets. The dis...

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Main Authors: Simon A. Broda, Marc S. Paolella
Format: Article
Language:English
Published: Foundation for Open Access Statistics 2023-09-01
Series:Journal of Statistical Software
Online Access:https://www.jstatsoft.org/index.php/jss/article/view/4714
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author Simon A. Broda
Marc S. Paolella
author_facet Simon A. Broda
Marc S. Paolella
author_sort Simon A. Broda
collection DOAJ
description This paper introduces ARCHModels.jl, a package for the Julia programming language that implements a number of univariate and multivariate autoregressive conditional heteroskedasticity models. This model class is the workhorse tool for modeling the conditional volatility of financial assets. The distinguishing feature of these models is that they model the latent volatility as a (deterministic) function of past returns and volatilities. This recursive structure results in loop-heavy code which, due to its just-in-time compiler, Julia is well-equipped to handle. As such, the entire package is written in Julia, without any binary dependencies. We benchmark the performance of ARCHModels.jl against popular implementations in MATLAB, R, and Python, and illustrate its use in a detailed case study.
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institution Kabale University
issn 1548-7660
language English
publishDate 2023-09-01
publisher Foundation for Open Access Statistics
record_format Article
series Journal of Statistical Software
spelling doaj-art-0b30bb9068d6412ea595b7eccbe7f71b2024-12-29T00:12:48ZengFoundation for Open Access StatisticsJournal of Statistical Software1548-76602023-09-01107110.18637/jss.v107.i05ARCHModels.jl: Estimating ARCH Models in JuliaSimon A. Broda0Marc S. Paolella1Lucerne University of Applied Sciences and ArtsUniversity of Zurich This paper introduces ARCHModels.jl, a package for the Julia programming language that implements a number of univariate and multivariate autoregressive conditional heteroskedasticity models. This model class is the workhorse tool for modeling the conditional volatility of financial assets. The distinguishing feature of these models is that they model the latent volatility as a (deterministic) function of past returns and volatilities. This recursive structure results in loop-heavy code which, due to its just-in-time compiler, Julia is well-equipped to handle. As such, the entire package is written in Julia, without any binary dependencies. We benchmark the performance of ARCHModels.jl against popular implementations in MATLAB, R, and Python, and illustrate its use in a detailed case study. https://www.jstatsoft.org/index.php/jss/article/view/4714
spellingShingle Simon A. Broda
Marc S. Paolella
ARCHModels.jl: Estimating ARCH Models in Julia
Journal of Statistical Software
title ARCHModels.jl: Estimating ARCH Models in Julia
title_full ARCHModels.jl: Estimating ARCH Models in Julia
title_fullStr ARCHModels.jl: Estimating ARCH Models in Julia
title_full_unstemmed ARCHModels.jl: Estimating ARCH Models in Julia
title_short ARCHModels.jl: Estimating ARCH Models in Julia
title_sort archmodels jl estimating arch models in julia
url https://www.jstatsoft.org/index.php/jss/article/view/4714
work_keys_str_mv AT simonabroda archmodelsjlestimatingarchmodelsinjulia
AT marcspaolella archmodelsjlestimatingarchmodelsinjulia