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CUSUM control schemes for monitoring the covariance matrix of multivariate time series
Physikalisch-Technische Bundesanstalt, Berlin, Germany.ORCID iD: 0000-0003-1359-3311
Department of Statistics, European University Viadrina, Frankfurt (Oder), Germany.
2016 (English)In: Statistics (Berlin), ISSN 0233-1888, E-ISSN 1029-4910, Vol. 51, no 4, p. 722-744Article in journal (Refereed) Published
Abstract [en]

Modified cumulative sum (CUSUM) control charts and CUSUM schemes for residuals are suggested to detect changes in the covariance matrix of multivariate time series. Several properties of these schemes are derived when the in-control process is a stationary Gaussian process. A Monte Carlo study reveals that the proposed approaches show similar or even better performance than the schemes based on the multivariate exponentially weighted moving average (MEWMA) recursion. We illustrate how the control procedures can be applied to monitor the covariance structure of developed stock market indices.

Place, publisher, year, edition, pages
Taylor & Francis, 2016. Vol. 51, no 4, p. 722-744
Keywords [en]
CUSUM control charts, statistical process control, multivariate time series, financial application
National Category
Probability Theory and Statistics
Identifiers
URN: urn:nbn:se:oru:diva-76708DOI: 10.1080/02331888.2016.1268616ISI: 000405210100002Scopus ID: 2-s2.0-85007325647OAI: oai:DiVA.org:oru-76708DiVA, id: diva2:1354096
Available from: 2019-09-24 Created: 2019-09-24 Last updated: 2019-10-25Bibliographically approved

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Bodnar, Olha

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