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Interactive application based on the revised OPSFXR framework
OPSFXR Research Application · v2.0

Foreign Exchange Risk Classification, made interpretable.

Explore the published 18-currency classification, inspect the reported GARCH(1,1) parameters, examine individual currency profiles, assess investor risk capacity, and analyse new FX datasets directly in the browser.

Currencies
18
INR-based FX series
Observations
2,255
Per currency in reported sample
Sample period
2012–2022
1 Apr 2012 to 31 Mar 2022
Published groups
3
Higher · Moderate · Lower volatility

OPSFXR workflow

Research pipeline represented in the application

1FX data
2Clean & align
3Log returns
4ARCH effects
5GARCH(1,1)
6Fuzzy stage
7Risk groups

Published classification at a glance

Labels are volatility-oriented, not return forecasts

Individual Currency Analysis

Published parameter profile and descriptive exchange-rate-level statistics from the reported sample.

USD

USD / INR

Moderate volatility
Mean exchange-rate level
Level standard deviation
Minimum level
Maximum level

These are descriptive statistics of exchange-rate levels and are not used as directly comparable risk measures across currencies.

GARCH(1,1) profile

Omega
Alpha
Beta
α + β

How to read this profile

ω is the variance intercept, α captures sensitivity to new shocks, and β captures volatility persistence. The sum α+β is a persistence indicator and should be interpreted cautiously when it is equal or extremely close to one.

Historical chart availability

The manuscript reports static figures but does not embed the underlying 2,255 daily observations in the app. To view genuine price, return and conditional-volatility charts, upload the original CSV/Excel dataset in Analyse New Data.

Published fuzzy boundaries: the first-stage cutoff reported in the study is 0.054 and the reported centroid is 0.009645. They are sample-specific computational outputs, not universal thresholds.

Reported GARCH(1,1) parameters

ω = variance intercept · α = shock response · β = persistence

CurrencyOmega (ω)Alpha (α)Beta (β)α + βPersistence notePublished group

Persistence check

For a covariance-stationary GARCH(1,1), α + β < 1. Several reported estimates are equal or extremely close to one, so the revised manuscript advises caution and re-estimation with full diagnostic output.

Interpretation boundary

The reported GARCH parameters are volatility-model quantities. In particular, ω is not expected return and a higher-volatility group should not be interpreted as a higher-profit group.

Investor Risk Capacity – Prototype Questionnaire

This questionnaire is an app-design aid, not part of the reported empirical study. It converts simple answers into a prototype risk-capacity score.

Your result

Prototype risk capacity
Not calculated
Answer all questions and calculate your score.

Risk groups within capacity
Awaiting assessment

The manuscript’s suitability rule is conservative: a group is suitable only when its assessed risk does not exceed the investor’s risk capacity.

Analyse a New FX Dataset

CSV and Excel (.xlsx/.xls) are supported. Processing occurs in your browser.

Drop CSV or Excel file here
or choose a file
No dataset loaded.

Method represented in the app

1

Data and returns

Daily INR-based FX observations are aligned and converted to log returns, rₜ = 100 × ln(Pₜ/Pₜ₋₁).

2

ARCH effects

The dynamic mode provides an ARCH-LM diagnostic before GARCH estimation. The revised study notes that formal ARCH testing is more appropriate than visual inspection alone.

3

GARCH(1,1)

σ²ₜ = ω + αε²ₜ₋₁ + βσ²ₜ₋₁. The app reports ω, α, β and α+β.

4

Published fuzzy classification

The original implementation reports a first-stage cutoff of 0.054 and centroid 0.009645. These are retained only for the published classification view.

5

Dynamic uploaded-data mode

Because full original fuzzy membership definitions and code are unavailable, uploaded-data results use transparent tertiles of estimated conditional volatility and are labelled exploratory.

Limitations

The application does not establish optimal portfolio weights, expected returns, Sharpe ratios, drawdowns, transaction costs or trading profitability. These require additional out-of-sample validation and realised-return analysis.