Time Series Analysis, Stochastic Process, Volatility, Data Science.
them in the main equation (line 29 of below code) Also, note that our Equation 1, GARCH (1,1) model builds a model of “Return”, but we need “price.” Thefore, I use line 35 below to convert each return to price value, using the “initial price” value. The function “generate_paths” has output S, where