The summary, comparison and re-projection of a covariance forecast evaluation: private API

PortfolioOptimisers.newey_west_varianceFunction
newey_west_variance(d::VecNum, lags::Integer)

Bartlett-kernel long-run variance of a series, at lags lags.

$\hat{\omega}^2 = \hat{\gamma}_0 + 2 \sum_{k=1}^{\ell} (1 - k / (\ell + 1))\, \hat{\gamma}_k$, with $\hat{\gamma}_k$ the sample autocovariance at lag $k$ about the sample mean, divided by the length of the series.

Arguments

  • d: The series.
  • lags: Number of lags, $\ell$.

Returns

  • omega2::Number: The long-run variance.

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