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This manuscript reports a stochastic dynamical scenario whose associated stationary probability density function is exactly a previously proposed one to adjust high-frequency traded volume distributions. This dynamical conjecture,…

Statistical Mechanics · Physics 2009-11-11 Silvio M. Duarte Queiros

A compound Poisson process whose randomized time is an independent Poisson process is called compound Poisson process with Poisson subordinator. We provide its probability distribution, which is expressed in terms of the Bell polynomials,…

Probability · Mathematics 2015-11-18 Antonio Di Crescenzo , Barbara Martinucci , Shelemyahu Zacks

We propose a simple model for the behaviour of longterm investors on a stock market, consisting of three particles, which represent the current price of the stock and the opinion of the buyers, respectively sellers, about the right trading…

Trading and Market Microstructure · Quantitative Finance 2009-04-27 Alexander Weiss

Optimal trading strategies for pairs trading have been studied by models that try to find either optimal shares of stocks by assuming no transaction costs or optimal timing of trading fixed numbers of shares of stocks with transaction…

Trading and Market Microstructure · Quantitative Finance 2019-11-26 Haipeng Xing

The call auction is a widely used trading mechanism, especially during the opening and closing periods of financial markets. In this paper, we study a standard call auction problem where orders are submitted according to Poisson processes,…

Trading and Market Microstructure · Quantitative Finance 2019-07-15 Ioane Muni Toke

Random fields are useful mathematical tools for representing natural phenomena with complex dependence structures in space and/or time. In particular, the Gaussian random field is commonly used due to its attractive properties and…

We consider a mean-reverting stochastic volatility model which satisfies some relevant stylized facts of financial markets. We introduce an algorithm for the detection of peaks in the volatility profile, that we apply to the time series of…

Statistical Finance · Quantitative Finance 2016-12-05 Mario Bonino , Matteo Camelia , Paolo Pigato

We propose a stochastic process for stock movements that, with just one source of Brownian noise, has an instantaneous volatility that rises from a type of statistical feedback across many time scales. This results in a stationary…

Other Condensed Matter · Physics 2008-12-02 Lisa Borland

We study linear statistics of a class of determinantal processes which interpolate between Poisson and GUE/Ginibre statistics in dimension 1 or 2. These processes are obtained by performing an independent Bernoulli percolation on the…

Probability · Mathematics 2019-07-23 Gaultier Lambert

Stock recommendation is vital to investment companies and investors. However, no single stock selection strategy will always win while analysts may not have enough time to check all S&P 500 stocks (the Standard & Poor's 500). In this paper,…

Trading and Market Microstructure · Quantitative Finance 2025-11-18 Hongyang Yang , Xiao-Yang Liu , Qingwei Wu

Modelling the first-order intensity function is one of the main aims in point process theory, and it has been approached so far from different perspectives. One appealing model describes the intensity as a function of a spatial covariate.…

Methodology · Statistics 2018-07-03 M. I. Borrajo , W. González-Manteiga , M. D. Martínez-Miranda

Recently, a generalized Bernoulli process (GBP) was developed as a stationary binary sequence whose covariance function obeys a power law. In this paper, we further develop generalized Bernoulli processes, reveal their asymptotic behaviors,…

Probability · Mathematics 2023-11-21 Jeonghwa Lee

We provide a stochastic thermodynamic description across scales for $N$ identical units with all-to-all interactions that are driven away from equilibrium by different reservoirs and external forces. We start at the microscopic level with…

Statistical Mechanics · Physics 2020-07-07 Tim Herpich , Tommaso Cossetto , Gianmaria Falasco , Massimiliano Esposito

This paper analyzes statistical properties of the Poisson line Cox point process useful in the modeling of vehicular networks. The point process is created by a two-stage construction: a Poisson line process to model road infrastructure and…

Information Theory · Computer Science 2018-07-24 Chang-Sik Choi , François Baccelli

In the series of models with interacting particles in stochastic geometry, a new contribution presents the facet process which is defined in arbitrary Euclidean dimension. In 2D, 3D specially it is a process of interacting segments, flat…

Probability · Mathematics 2015-04-02 Jakub Vecera , Viktor Benes

Presence-only data, point locations where a species has been recorded as being present, are often used in modeling the distribution of a species as a function of a set of explanatory variables---whether to map species occurrence, to…

Applications · Statistics 2010-11-16 David I. Warton , Leah C. Shepherd

In this dissertation two simple models of stock exchange are developed and simulated numerically. The first is characterized by centralized trading with a market maker. Unfortunately, this model is unable to generate realistic market…

Statistical Mechanics · Physics 2008-12-02 Hendrik J. Blok

We study the asymptotic behavior of empirical processes generated by measurable bounded functions of an infinite source Poisson transmission process when the session length have infinite variance. In spite of the boundedness of the…

Probability · Mathematics 2012-07-11 François Roueff , Gennady Samorodnitsky , Philippe Soulier

A central problem of Quantitative Finance is that of formulating a probabilistic model of the time evolution of asset prices allowing reliable predictions on their future volatility. As in several natural phenomena, the predictions of such…

Statistical Finance · Quantitative Finance 2012-09-25 Fulvio Baldovin , Dario Bovina , Francesco Camana , Attilio L. Stella

In the classical model of stock prices which is assumed to be Geometric Brownian motion, the drift and the volatility of the prices are held constant. However, in reality, the volatility does vary. In quantitative finance, the Heston model…

Pricing of Securities · Quantitative Finance 2019-10-21 Arunangshu Biswas , Anindya Goswami , Ludger Overbeck