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We consider a square-integrable semimartingale and investigate the convex order relations between its discrete, continuous and predictable quadratic variation. As the main results, we show that if the semimartingale has conditionally…

Pricing of Securities · Quantitative Finance 2012-10-03 Martin Keller-Ressel , Claus Griessler

Neural stochastic differential equation model with a Brownian motion term can capture epistemic uncertainty of deep neural network from the perspective of a dynamical system. The goal of this paper is to improve the convergence rate of the…

Numerical Analysis · Mathematics 2025-09-09 Daili Sheng , Minghui Song , Xiang Peng , Xuanqi Dong

We investigate propagation of convexity and convex ordering on a typical discrete-time stochastic optimal control problem, namely the pricing of swing option. The dynamics of the underlying asset is modelled by the Euler scheme of a…

Mathematical Finance · Quantitative Finance 2025-08-05 Gilles Pagès , Christian Yeo

IIn this paper, we study a partially observed progressive optimal control problem of forward-backward stochastic differential equations with random jumps, where the control domain is not necessarily convex, and the control variable enter…

Optimization and Control · Mathematics 2022-06-27 Yueyang Zheng , Jingtao Shi

We introduce deterministic perturbation schemes for the recently proposed random directions stochastic approximation (RDSA) [17], and propose new first-order and second-order algorithms. In the latter case, these are the first second-order…

Optimization and Control · Mathematics 2019-03-29 Prashanth L A , Shalabh Bhatnagar , Nirav Bhavsar , Michael Fu , Steven I. Marcus

We study monotone and convex stochastic orders for processes with independent increments. Our contributions are twofold: First, we relate stochastic orders of the Poisson component to orders of their (generalized) L\'evy measures. The…

Probability · Mathematics 2017-08-16 David Criens

Directionally convex ($dcx$) ordering is a tool for comparison of dependence structure of random vectors that also takes into account the variability of the marginal distributions. When extended to random fields it concerns comparison of…

Probability · Mathematics 2009-11-19 Bartlomiej Blaszczyszyn , D. Yogeshwaran

In this paper, we are interested in the propagation of convexity by the strong solution to a one-dimensional Brownian stochastic differential equation with coefficients Lipschitz in the spatial variable uniformly in the time variable and in…

Probability · Mathematics 2023-12-18 Benjamin Jourdain , Gilles Pagès

In the present paper we show that in P\'{o}lya's urn model, for an arbitrarily fixed initial distribution of the urn, the corresponding random variables satisfy a convex ordering with respect to the replacement parameter. As an application,…

Probability · Mathematics 2022-01-19 Diana Meleşteu , Mihai N. Pascu , Nicolae R. Pascu

Sufficient and necessary conditions are presented for the order-preservation of stochastic functional differential equations on $\R^d$ with non-Lipschitzian coefficients driven by the Brownian motion and Poisson processes. The sufficiency…

Probability · Mathematics 2014-01-22 Xing Huang , Feng-Yu Wang

In this paper, we propose new sequential randomized algorithms for convex optimization problems in the presence of uncertainty. A rigorous analysis of the theoretical properties of the solutions obtained by these algorithms, for full…

Systems and Control · Computer Science 2016-11-17 Mohammadreza Chamanbaz , Fabrizio Dabbene , Roberto Tempo , Venkatakrishnan Venkataramanan , Qing-Guo Wang

We study metric projections onto cones in the Wasserstein space of probability measures, defined by stochastic orders. Dualities for backward and forward projections are established under general conditions. Dual optimal solutions and their…

Probability · Mathematics 2021-10-12 Young-Heon Kim , Yuan Long Ruan

Convolutions of independent random variables often arise in a natural way in many applied problems. In this article, we compare convolutions of two sets of gamma (negative binomial) random variables in the convolution order and the usual…

Probability · Mathematics 2018-11-29 Ying Zhang

We show that a family of random variables is uniformly integrable if and only if it is stochastically bounded in the increasing convex order by an integrable random variable. This result is complemented by proving analogous statements for…

Probability · Mathematics 2011-06-06 Lasse Leskelä , Matti Vihola

Ranking distributions according to a stochastic order has wide applications in diverse areas. Although stochastic dominance has received much attention, convex order, particularly in general dimensions, has yet to be investigated from a…

Methodology · Statistics 2025-01-15 Jakwang Kim , Young-Heon Kim , Yuanlong Ruan , Andrew Warren

We consider unconstrained randomized optimization of convex objective functions. We analyze the Random Pursuit algorithm, which iteratively computes an approximate solution to the optimization problem by repeated optimization over a…

Optimization and Control · Mathematics 2012-05-25 Sebastian U. Stich , Christian L. Müller , Bernd Gärtner

Uniform large deviation principles for positive functionals of all equivalent types of infinite dimensional Brownian motions acting together with a Poisson random measure are established. The core of our approach is a variational…

Probability · Mathematics 2014-03-13 Vasileios Maroulas

Most of the stochastic orders for comparing random variables, considered in the literature, are afflicted with two main drawbacks: (i) lack of connex property and (ii) lack of consideration of any dependence structure between the random…

Methodology · Statistics 2021-03-03 Sugata Ghosh , Asok K. Nanda

We investigate the (functional) convex order of for various continuous martingale processes, either with respect to their diffusions coefficients for L\'evy-driven SDEs or their integrands for stochastic integrals. Main results are bordered…

Probability · Mathematics 2014-07-24 Gilles Pagès

We derive sufficient conditions for the convex and monotonic g-stochastic ordering of diffusion processes under nonlinear g-expectations and g-evaluations. Our approach relies on comparison results for forward-backward stochastic…

Probability · Mathematics 2022-04-13 Sel Ly , Nicolas Privault
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