Arch | Models

April 14, 2026 | Reading Time: 5 minutes

If you have ever tried to predict stock market volatility, you have run into a frustrating reality: arch models

For decades, standard statistical models assumed something called homoscedasticity —a fancy way of saying "constant variance." But financial returns are clearly heteroscedastic (changing variance). April 14, 2026 | Reading Time: 5 minutes