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Modelling financial time series as a time change of a simpler process has been proposed in various forms over the years. One of such recent approaches is called volatility homogenisation decomposition, and has been designed specifically to…

Statistical Finance · Quantitative Finance 2014-07-01 Paweł Fiedor , Odd Magnus Trondrud

The configurational de-correlation in an aging system is attributed to irreversible intermittent rearrangements, which are described as a Poisson process with average $\propto \ln(1 + t/t_w)$, where $t$ is the observation time and $t_w$ is…

Soft Condensed Matter · Physics 2007-05-23 Paolo Sibani

We consider the jump telegraph process when switching intensities depend on external shocks also accompanying with jumps. The incomplete financial market model based on this process is studied. The Esscher transform, which changes only…

Probability · Mathematics 2021-03-16 Antonio Di Crescenzo , Barbara Martinucci , Nikita Ratanov

We address the problem of long-range memory in the financial markets. There are two conceptually different ways to reproduce power-law decay of auto-correlation function: using fractional Brownian motion as well as non-linear stochastic…

Statistical Finance · Quantitative Finance 2017-05-24 V. Gontis , A. Kononovicius

We analyze, both analytically and numerically, the time-dependence of the return probability in closed systems of interacting particles. Main attention is paid to the interplay between two regimes, one of which is characterized by the…

Disordered Systems and Neural Networks · Physics 2009-11-11 F. M. Izrailev , A. Castaneda-Mendoza

The entropy production rate (EPR), a key measure of thermodynamic irreversibility in stochastic thermodynamics, is difficult to determine directly in experiments, motivating lower-bound-based estimation from observations. However, a…

Statistical Mechanics · Physics 2026-05-19 Yijia Cheng , Ruicheng Bao , Zhonghuai Hou

We consider a decision network on an undirected graph in which each node corresponds to a decision variable, and each node and edge of the graph is associated with a reward function whose value depends only on the variables of the…

Probability · Mathematics 2009-12-03 David Gamarnik , David Goldberg , Theophane Weber

This paper identifies and investigates nature of the transition between Gaussian and exponential forms of decoherence. We show that the decoherence factor (that controls the time dependence of the suppression of the off-diagonal terms when…

Quantum Physics · Physics 2022-11-23 Bin Yan , Wojciech H. Zurek

We present a unified approach to those observables of stochastic processes under reset that take the form of averages of functionals depending on the most recent renewal period. We derive solutions for the observables, and determine the…

Soft Condensed Matter · Physics 2019-03-28 G. John Lapeyre , Marco Dentz

We present a time dependent variational method to learn the mechanisms of equilibrium reactive processes and efficiently evaluate their rates within a transition path ensemble. This approach builds off variational path sampling methodology…

Chemical Physics · Physics 2023-07-10 Aditya N. Singh , David T. Limmer

We apply a recently proposed method for the analysis of time series from systems with delayed feedback to experimental data generated by a CO_2 laser. The method is able to estimate the delay time with an error of the order of the sampling…

chao-dyn · Physics 2009-10-31 M. J. Bünner , M. Ciofini , A. Giaquinta , R. Hegger , H. Kantz , R. Meucci , A. Politi

The gain-loss asymmetry, observed in the inverse statistics of stock indices is present for logarithmic return levels that are over $2\%$, and it is the result of the non-Pearson type auto-correlations in the index. These non-Pearson type…

Statistical Finance · Quantitative Finance 2016-08-24 Bulcsú Sándor , Ingve Simonsen , Bálint Zsolt Nagy , Zoltán Néda

Inference about treatment effects for time-to-event outcomes is often obscured by the presence of competing events. A particularly complex situation arises when the treatment influences the occurrence of the competing event. A comprehensive…

The mutual information between stimulus and spike-train response is commonly used to monitor neural coding efficiency, but neuronal computation broadly conceived requires more refined and targeted information measures of input-output joint…

Neurons and Cognition · Quantitative Biology 2015-04-21 Sarah E. Marzen , Michael R. DeWeese , James P. Crutchfield

Task completion in digital and physical environments increasingly involves complex temporal interaction, where actions and observations unfold over different time scales rather than align with fixed observation--action steps. To model such…

Artificial Intelligence · Computer Science 2026-05-13 Jialian Li , Yuchen Cao , Junhong Liu , Weiran Guo , Xutao Wang , Jiaming Song , Jiahao Zhang , Jie Chen

Identifying macroeconomic events that are responsible for dramatic changes of economy is of particular relevance to understand the overall economic dynamics. We introduce an open-source available efficient Python implementation of a…

Statistical Finance · Quantitative Finance 2026-03-03 Martin Heßler , Tobias Wand , Oliver Kamps

We investigate the decay of spatial correlations of $\mathcal{PT}$-symmetric non-Hermitian one-dimensional models that host higher-order exceptional points. Beyond a certain correlation length, they develop anomalous power-law behavior that…

Mesoscale and Nanoscale Physics · Physics 2023-08-16 Doru Sticlet , Cătălin Paşcu Moca , Balázs Dóra

We develop dependent hierarchical normalized random measures and apply them to dynamic topic modeling. The dependency arises via superposition, subsampling and point transition on the underlying Poisson processes of these measures. The…

Machine Learning · Computer Science 2012-06-22 Changyou Chen , Nan Ding , Wray Buntine

This paper derives the expressions of correlations between prices of two assets, returns of two assets, and price-return correlations of two assets that depend on statistical moments and correlations of the current values, past values, and…

General Economics · Economics 2024-12-18 Victor Olkhov

Financial data has been extensively studied for correlations using Pearson's cross-correlation coefficient {\rho} as the point of departure. We employ an estimator based on recurrence plots --- the Correlation of Probability of Recurrence…

Statistical Finance · Quantitative Finance 2013-06-05 B. Goswami , G. Ambika , N. Marwan , J. Kurths