Tag: leverage

Modeling the Error Term by Moving Average and Generalized Autoregressive Conditional Heteroscedasticity Processes: An Advanced Research

The Combine White Noise model beats the existing Generalized Autoregressive Conditional Heteroscedasticity (GARCH) and Moving Average (MA) models in simulating conditional heteroscedasticity and leverage effect errors, according to this study. The MA process is unable to model data that exposes conditional heteroscedasticity, and the GARCH model is likewise unable...
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