Hello.
I have a basic question with predict correlation using MGARCH DCC models.
Why initial values estimated for each pair series, after predict correlation command, are close to zero?
code:
mgarch dcc (rp1 rp2 rp3 rp4 rp5 rp6 = l.rp1 l.rp2 l.rp3 l.rp4 l.rp5 l.rp6), arch(1/1) garch(1/1)
predict Corr*, correlation
Array
Thank you.
Henry.
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