Garch forecasting

Hi, am currently trying to use the garchpred function to produce a forecast with two explanatory variables. However, whenever running the code I get an error message and I could not figure out. Hence, I would really appreciate your help. Attached is the code that I am trying to run, which I extracted from the overall code, and the specifications of the parameters.

clear cd C:\Users\Joerg\University\TermPaper [num,txt,raw]=xlsread('Testing.xls'); Series=num(:,1); X=num(:,2:3); XF=num(1:5,4:5); Periods=5; Spec = garchset('P', 1, 'Q', 1); % fitting a GARCH(1,1) [sigmaForecast,meanForecast,sigmaTotal,meanRMSE] = garchpred(Spec,Series,Periods,X,XF)

Series: 1605x1 double X: 1605x2 double XF: 5x2 double

I always get the following error message which I do not understand given the current data since I believe this matches. What could be wrong? ??? Error using ==> garchpred at 272 Number of specified regression coefficients must equal number of columns in regression matrix.

Thank you for your help! Joerg

[Oleg Komarov]

Please format the code and the error message: http://www.mathworks.com/matlabcentral/answers/7885-tutorial-how-to-format-your-question

Answer 1

[Oleg Komarov]

You have to fit (garchfit?) the past history (X) to retrieve the coefficients and supply them to:

Spec = garchset(...,'Regress',coeff)