Bitcoin volatility forecasting with the HAR-type models

We aim to forecast the volatility of bitcoin using high-frequency data in this paper. Based on the HAR-RV model, we construct extensive HAR-type models by including various jump components and analysis their in-sample regression fitness and out-of-sample forecast abilities. We verify the importance...

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Main Author: Zhang, Jiawei
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2019
Online Access:https://eprints.nottingham.ac.uk/57681/
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author Zhang, Jiawei
author_facet Zhang, Jiawei
author_sort Zhang, Jiawei
building Nottingham Research Data Repository
collection Online Access
description We aim to forecast the volatility of bitcoin using high-frequency data in this paper. Based on the HAR-RV model, we construct extensive HAR-type models by including various jump components and analysis their in-sample regression fitness and out-of-sample forecast abilities. We verify the importance of the jump component in the in-sample regression analysis. The out-of-sample forecast shows that the HAR-RV-SJ and HAR-RV-J models have the best performance. Overall, our result indicates that the HAR-type models have an advantage at mimicking the long memory and using the jump component is significant to the volatility forecast both in-sample and out-of-sample. Keywords: bitcoin; realized variance; HAR; signed jumps; volatility forecasting; realized semivariance
first_indexed 2025-11-14T20:36:34Z
format Dissertation (University of Nottingham only)
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institution University of Nottingham Malaysia Campus
institution_category Local University
language English
last_indexed 2025-11-14T20:36:34Z
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spelling nottingham-576812022-11-30T15:45:42Z https://eprints.nottingham.ac.uk/57681/ Bitcoin volatility forecasting with the HAR-type models Zhang, Jiawei We aim to forecast the volatility of bitcoin using high-frequency data in this paper. Based on the HAR-RV model, we construct extensive HAR-type models by including various jump components and analysis their in-sample regression fitness and out-of-sample forecast abilities. We verify the importance of the jump component in the in-sample regression analysis. The out-of-sample forecast shows that the HAR-RV-SJ and HAR-RV-J models have the best performance. Overall, our result indicates that the HAR-type models have an advantage at mimicking the long memory and using the jump component is significant to the volatility forecast both in-sample and out-of-sample. Keywords: bitcoin; realized variance; HAR; signed jumps; volatility forecasting; realized semivariance 2019-12-01 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/57681/1/4337698%20Finance%20%26%20Investment%20Dissertation%20N14031%20Bitcoin%20volatility%20forecasting%20with%20the%20HAR-type%20models.pdf Zhang, Jiawei (2019) Bitcoin volatility forecasting with the HAR-type models. [Dissertation (University of Nottingham only)]
spellingShingle Zhang, Jiawei
Bitcoin volatility forecasting with the HAR-type models
title Bitcoin volatility forecasting with the HAR-type models
title_full Bitcoin volatility forecasting with the HAR-type models
title_fullStr Bitcoin volatility forecasting with the HAR-type models
title_full_unstemmed Bitcoin volatility forecasting with the HAR-type models
title_short Bitcoin volatility forecasting with the HAR-type models
title_sort bitcoin volatility forecasting with the har-type models
url https://eprints.nottingham.ac.uk/57681/