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Arguably the most important problem in quantitative finance is to understand the nature of stochastic processes that underlie market dynamics. One aspect of the solution to this problem involves determining characteristics of the…

Physics and Society · Physics 2009-11-13 Kevin E. Bassler , Joseph L. McCauley , Gemunu H. Gunaratne

Recurrence plots provide a graphical representation of the recurrent patterns in a timeseries, the quantification of which is a relatively new field. Here we derive analytical expressions which relate the values of key statistics, notably…

Data Analysis, Statistics and Probability · Physics 2007-05-23 T. K. March , S. C. Chapman , R. O. Dendy

Modeling univariate block maxima by the generalized extreme value distribution constitutes one of the most widely applied approaches in extreme value statistics. It has recently been found that, for an underlying stationary time series,…

Statistics Theory · Mathematics 2021-11-01 Axel Bücher , Leandra Zanger

We study the evolution leading to (or regressing from) a large fluctuation in a Statistical Mechanical system. We introduce and study analytically a simple model of many identically and independently distributed microscopic variables $n_m$…

Statistical Mechanics · Physics 2017-03-28 Federico Corberi

Accurate estimation of the frequency and magnitude of successive extreme events in energy demand is critical for strategic resource planning. Traditional approaches based on extreme value theory (EVT) are typically limited to modelling…

Statistics Theory · Mathematics 2025-09-10 Grace Burtenshaw , Joe Lane , Meagan Carney

We study the non-equilibrium time evolution of the classical XY spin model in two dimensions. The two-time autocorrelation and linear response functions are considered for systems initially prepared in a high temperature state and in a…

Statistical Mechanics · Physics 2009-11-10 Stephane Abriet , Dragi Karevski

Nonextensive statistics is a formalism of statistical mechanics that describes the ocurrence of power-law distributions in complex systems, particularly the so-called $q$ exponential family of distributions. In this work we present the use…

Statistical Mechanics · Physics 2019-09-30 Haridas Umpierrez , Sergio Davis

We study the temporal fluctuations in time-dependent stock prices (both individual and composite) as a stochastic phenomenon using general techniques and methods of nonequilibrium statistical mechanics. In particular, we analyze stock price…

Physics and Society · Physics 2008-12-02 M. Constantin , S. Das Sarma

A large consensus now seems to take for granted that the distributions of empirical returns of financial time series are regularly varying, with a tail exponent close to 3. We revisit this results and use standard tests as well as develop a…

Physics and Society · Physics 2008-12-10 Y. Malevergne , V. F. Pisarenko , D. Sornette

The statistical properties of heart beat intervals of 130 long-term surface electrocardiogram recordings during atrial fibrillation (AF) are investigated. We find that the distribution of interbeat intervals exhibits a characteristic…

Other Condensed Matter · Physics 2007-05-23 Thomas Hennig , Philipp Maass , Junichiro Hayano , Stefan Heinrichs

In this paper, we analyze several instrumental records of temperatures at different locations by using new techniques originally developed for the analysis of extreme values of dynamical systems. We show that they have the same recurrence…

Geophysics · Physics 2014-03-24 Davide Faranda , Sandro Vaienti

The extremal index parameter theta characterizes the degree of local dependence in the extremes of a stationary time series and has important applications in a number of areas, such as hydrology, telecommunications, finance and…

Methodology · Statistics 2010-05-25 Kamal Hamidieh , Stilian A. Stoev , George Michailidis

The detrended cross-correlation coefficient $\rho_{\rm DCCA}$ has recently been proposed to quantify the strength of cross-correlations on different temporal scales in bivariate, non-stationary time series. It is based on the detrended…

Data Analysis, Statistics and Probability · Physics 2015-12-09 Jaroslaw Kwapien , Pawel Oswiecimka , Stanislaw Drozdz

The role played by non extensive thermodynamics in physical systems has been under intense debate for the last decades. With many applications in several areas, the Tsallis statistics has been discussed in details in many works and…

Statistical Mechanics · Physics 2018-10-17 Airton Deppman , Eugenio Megias , Debora P. Menezes , Tobias Frederico

We study general nonlinear models for time series networks of integer and continuous valued data. The vector of high dimensional responses, measured on the nodes of a known network, is regressed non-linearly on its lagged value and on…

Methodology · Statistics 2023-12-25 Mirko Armillotta , Konstantinos Fokianos

In this paper, we discuss the application of extreme value theory in the context of stationary $\beta$-mixing sequences that belong to the Fr\'echet domain of attraction. In particular, we propose a methodology to construct bias-corrected…

Statistics Theory · Mathematics 2017-08-24 Valérie Chavez-Demoulin , Armelle Guillou

Fractal behavior and long-range dependence are widely observed in measurements and characterization of traffic flow in high-speed computer networks of different technologies and coverage levels. This paper presents the results obtained when…

Networking and Internet Architecture · Computer Science 2021-07-13 G. Millán , G. Lefranc , R. Osorio-Comparán , V. Lomas-Barrie

Financial time series exhibit two different type of non linear correlations: (i) volatility autocorrelations that have a very long range memory, on the order of years, and (ii) asymmetric return-volatility (or `leverage') correlations that…

Statistical Mechanics · Physics 2008-12-02 Josep Perello , Jaume Masoliver , Jean-Philippe Bouchaud

The Fluctuation Relation (FR) is an asymptotic result on the distribution of certain observables averaged over time intervals T as T goes to infinity and it is a generalization of the fluctuation--dissipation theorem to far from equilibrium…

Statistical Mechanics · Physics 2009-11-10 A. Giuliani , F. Zamponi , G. Gallavotti

We prove limit theorems of an entirely new type for certain long memory regularly varying stationary infinitely divisible random processes. These theorems involve multiple phase transitions governed by how long the memory is. Apart from one…

Probability · Mathematics 2018-05-23 Gennady Samorodnitsky , Yizao Wang