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Volatility-Aware Extreme Event Detection in High-Frequency Financial Markets

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Predicting extreme price movements in high-frequency financial markets is a challenging task due to non-stationarity, heavy-tailed return distributions, and severe class imbalance. In particular, rare but impactful events are often difficult to detect using conventional modeling approaches, which typically treat extreme movements as isolated observations.

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arXiv Machine Learning
Aug 4

Latent-Regime Bias Auditing for Volatility Forecasting

arXiv:2608. 01599v1 Announce Type: new Abstract: Volatility forecasts are commonly evaluated with aggregate accuracy metrics such as RMSE and MAE, but these metrics can hide conditional failures that matter for risk management.

By Arthur Chagas, Pedro Bento, Yan Aquino, Arthur Buzelin, Wagner Meira Jr., Cristiano Arbex Valle