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Continuous Online GARCH

3 messages · Noah Silverman, stefano iacus, Patrick Burns

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Hi,

In my readings, I've come across some mentions of  COGARCH which is a continuous estimation of GARCH as data streams in online.

I can't find any R library that does this.  Does anyone know of one.

Alternately, can someone outline the COGARCH algorithm in pseudo-code so that I can write my own in R or C?

--
Noah Silverman
UCLA Department of Statistics
8117 Math Sciences Building
Los Angeles, CA 90095
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You should check K.  Kl?ppelberg webpage or the relevant papers by she and her collaborators.
There you find a mix of the method of moments and quasi-likelihood to calibrate cogarch.
e.g. http://epub.ub.uni-muenchen.de/1827/1/paper_458.pdf

AFAIK, cogarch is not "continuous estimation of garch", is a continuos stochastic process with garch similarities, which you estimate on discrete data. Essentially based on L?vy models. A student of mine is working on some R code, but you find other ready-to-use solution, please spread the word :-)

stefano
On 9 Jul 2011, at 21:39, Noah Silverman wrote:

            
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Stefano M. Iacus
Department of Economics,
Business and Statistics
University of Milan
Via Conservatorio, 7
I-20123 Milan - Italy
Ph.: +39 02 50321 461
Fax: +39 02 50321 505
http://www.economia.unimi.it/iacus
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I don't know anything about that algorithm.
However, intraday garch is (or should be)
complicated because there is volatility
seasonality throughout the day.
On 09/07/2011 20:39, Noah Silverman wrote: