Asymptotic properties and drift parameter estimations of the ergodic double Heston model based on continuous-time observations

Fuente: arXiv
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Main Authors: Alaya, Mohamed Ben, Dahbi, Houssem, Fathallah, Hamdi
Format: Preprint
Published: 2025
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author Alaya, Mohamed Ben
Dahbi, Houssem
Fathallah, Hamdi
author_facet Alaya, Mohamed Ben
Dahbi, Houssem
Fathallah, Hamdi
contents The double Heston model is one of the most popular option pricing models in financial theory. It is applied to several issues such that risk management and volatility surface calibration. This paper deals with the problem of global parameter estimations in this model. Our main stochastic results are about the stationarity and the ergodicity of the double Heston process. The statistical part of this paper is about the maximum likelihood and the conditional least squares estimations based on continuous-time observations; then for each estimation method, we study the asymptotic properties of the resulted estimators in the ergodic case.
format Preprint
id arxiv_https___arxiv_org_abs_2501_17100
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Asymptotic properties and drift parameter estimations of the ergodic double Heston model based on continuous-time observations
Alaya, Mohamed Ben
Dahbi, Houssem
Fathallah, Hamdi
Statistics Theory
Computation
The double Heston model is one of the most popular option pricing models in financial theory. It is applied to several issues such that risk management and volatility surface calibration. This paper deals with the problem of global parameter estimations in this model. Our main stochastic results are about the stationarity and the ergodicity of the double Heston process. The statistical part of this paper is about the maximum likelihood and the conditional least squares estimations based on continuous-time observations; then for each estimation method, we study the asymptotic properties of the resulted estimators in the ergodic case.
title Asymptotic properties and drift parameter estimations of the ergodic double Heston model based on continuous-time observations
topic Statistics Theory
Computation
url https://arxiv.org/abs/2501.17100