Skip to content

Help GARCH forecasting

1 message · tonyp

#
If I were you, I would think twice of using GARCH for prediction. Time Series
models are notorious for their unreliability into the financial quant space,
simply due to the stylized fact that even after correcting returns for
volatility clustering, the residual ts still exhibits heavy tails. Be
cautious!!! In addition, you apply the analysis on returns; preferrably log
returns not on prices! Good luck. There is planty of good sources outthere
of what you are looking for. 

--
View this message in context: http://r.789695.n4.nabble.com/Help-GARCH-forecasting-tp3616117p3635285.html
Sent from the Rmetrics mailing list archive at Nabble.com.