Portfolio single index (PSI) multivariate conditional and stochastic volatility models

The paper develops the structure of parsimonious portfolio single index (PSI) multivariate conditional and stochastic constant correlation volatility models, and methods for estimating the underlying parameters. These multivariate estimates of volatility can be used for more accurate portfolio risk...

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Main Authors: Asai, M., Mcaleer, M., Da Veiga, Bernardo
Format: Journal Article
Published: Elsevier Science 2008
Online Access:http://hdl.handle.net/20.500.11937/15800
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author Asai, M.
Mcaleer, M.
Da Veiga, Bernardo
author_facet Asai, M.
Mcaleer, M.
Da Veiga, Bernardo
author_sort Asai, M.
building Curtin Institutional Repository
collection Online Access
description The paper develops the structure of parsimonious portfolio single index (PSI) multivariate conditional and stochastic constant correlation volatility models, and methods for estimating the underlying parameters. These multivariate estimates of volatility can be used for more accurate portfolio risk management, to enable efficient forecasting of value-at-risk (VaR) thresholds, and to determine optimal Basel Accord capital charges. A parsimonious portfolio single index approach for modelling the conditional and stochastic covariance matrices of a portfolio of assets is developed, and estimation methods for the conditional and stochastic volatility models are discussed.
first_indexed 2025-11-14T07:13:50Z
format Journal Article
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institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T07:13:50Z
publishDate 2008
publisher Elsevier Science
recordtype eprints
repository_type Digital Repository
spelling curtin-20.500.11937-158002017-09-13T14:07:14Z Portfolio single index (PSI) multivariate conditional and stochastic volatility models Asai, M. Mcaleer, M. Da Veiga, Bernardo The paper develops the structure of parsimonious portfolio single index (PSI) multivariate conditional and stochastic constant correlation volatility models, and methods for estimating the underlying parameters. These multivariate estimates of volatility can be used for more accurate portfolio risk management, to enable efficient forecasting of value-at-risk (VaR) thresholds, and to determine optimal Basel Accord capital charges. A parsimonious portfolio single index approach for modelling the conditional and stochastic covariance matrices of a portfolio of assets is developed, and estimation methods for the conditional and stochastic volatility models are discussed. 2008 Journal Article http://hdl.handle.net/20.500.11937/15800 10.1016/j.matcom.2008.01.014 Elsevier Science restricted
spellingShingle Asai, M.
Mcaleer, M.
Da Veiga, Bernardo
Portfolio single index (PSI) multivariate conditional and stochastic volatility models
title Portfolio single index (PSI) multivariate conditional and stochastic volatility models
title_full Portfolio single index (PSI) multivariate conditional and stochastic volatility models
title_fullStr Portfolio single index (PSI) multivariate conditional and stochastic volatility models
title_full_unstemmed Portfolio single index (PSI) multivariate conditional and stochastic volatility models
title_short Portfolio single index (PSI) multivariate conditional and stochastic volatility models
title_sort portfolio single index (psi) multivariate conditional and stochastic volatility models
url http://hdl.handle.net/20.500.11937/15800