Financial Time Series and Forecasting

QBUS6830

Time series and statistical modelling is a fundamental component of the theory and practice of modern financial asset pricing as well as financial risk measurement and management. Further, forecasting is a required component of financial and investment decision making. This unit firstly provides an introduction to the time series models used for the analysis of data arising in financial markets. Second, it considers methods for forecasting, testing and sensitivity analyses, in the context of these models. Topics include: the properties of financial return data; the Capital Asset Pricing Model (CAPM); financial return factor models, with known and unknown factors, in panel data settings; modelling and forecasting conditional volatility, via ARCH and GARCH; forecasting market risk measures such as Value at Risk. Emphasis will be placed on applications involving the analysis of many real market datasets. Students will be encouraged to undertake hands-on analysis using an appropriate computing package.

Unit of study details

Unit of study level: Postgraduate

Credit points: 6

Commencing semesters: 1

Further unit of study information

Unit of study handbook: QBUS6830

Costs and scholarships information: Costs and Scholarships

Final dates to withdraw from units of study: Census Dates

Available for study abroad and exchange: Yes

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