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The theory of functionally generated portfolios (FGPs) is an aspect of the continuous-time, continuous-path Stochastic Portfolio Theory of Robert Fernholz. FGPs have been formulated to yield a master equation - a description of their return…

Portfolio Management · Quantitative Finance 2013-10-29 Winslow Strong

We present a simple two-dimensional dynamical system where two nonlinear terms, exerting respectively positive feedback and reversal, compete to create a singularity in finite time decorated by accelerating oscillations. The power law…

Statistical Mechanics · Physics 2009-11-07 K. D. Ide , D. Sornette

The purpose of the present work is twofold. First, we develop the theory of general self-similar growth-fragmentation processes by focusing on martingales which appear naturally in this setting and by recasting classical results for…

Probability · Mathematics 2017-12-13 Jean Bertoin , Timothy Budd , Nicolas Curien , Igor Kortchemski

We provide simple models for the utility function (or psychology) of an actor trading a multitude of goods for money. In this framework, money has no intrinsic consumption value, but is required as a medium of exchange. A collection of such…

Physics and Society · Physics 2026-05-25 Robert S. Farr

The present article explores the application of randomized control techniques in empirical asset pricing and performance evaluation. It introduces geometric random walks, a class of Markov chain Monte Carlo methods, to construct flexible…

Portfolio Management · Quantitative Finance 2024-03-04 Cyril Bachelard , Apostolos Chalkis , Vissarion Fisikopoulos , Elias Tsigaridas

In this paper, we show analytically that the duality of normal factor graphs (NFG) can facilitate stochastic estimation of partition functions. In particular, our analysis suggests that for the $q-$ary two-dimensional nearest-neighbor Potts…

Information Theory · Computer Science 2014-01-29 Ali Al-Bashabsheh , Yongyi Mao

In the literature on stochastic frontier models until the early 2000s, the joint consideration of spatial and temporal dimensions was often inadequately addressed, if not completely neglected. However, from an evolutionary economics…

Methodology · Statistics 2024-10-29 Elisa Fusco , Giuseppe Arbia , Francesco Vidoli , Vincenzo Nardelli

We study utility maximization problem for general utility functions using dynamic programming approach. We consider an incomplete financial market model, where the dynamics of asset prices are described by an $R^d$-valued continuous…

Probability · Mathematics 2008-12-10 M. Mania , R. Tevzadze

In the context of stochastic portfolio theory we introduce a novel class of portfolios which we call linear path-functional portfolios. These are portfolios which are determined by certain transformations of linear functions of a…

Mathematical Finance · Quantitative Finance 2024-10-08 Christa Cuchiero , Janka Möller

Generating synthetic financial time series data that accurately reflects real-world market dynamics holds tremendous potential for various applications, including portfolio optimization, risk management, and large scale machine learning. We…

Mathematical Finance · Quantitative Finance 2025-11-05 Chung I Lu , Julian Sester

We investigate the generation of features at large scales in the primordial power spectrum (PPS) when inflation is driven by two scalar fields. In canonical single field models of inflation, these features are often generated due to…

Cosmology and Nongalactic Astrophysics · Physics 2020-08-19 Matteo Braglia , Dhiraj Kumar Hazra , L. Sriramkumar , Fabio Finelli

In this paper, we derive tail approximations of integrals of exponential functions of Gaussian random fields with varying mean functions and approximations of the associated point processes. This study is motivated naturally by multiple…

Statistics Theory · Mathematics 2011-12-05 Jingchen Liu , Gongjun Xu

This is a short letter summarizing the long paper cond-mat/0106047 in which we present a simple two-dimensional dynamical system reaching a singularity in finite time decorated by accelerating oscillations due to the interplay between…

Statistical Mechanics · Physics 2009-11-07 D. Sornette , K. Ide

It has been recently shown that numerical semiparametric bounds on the expected payoff of fi- nancial or actuarial instruments can be computed using semidefinite programming. However, this approach has practical limitations. Here we use…

Pricing of Securities · Quantitative Finance 2016-01-12 Robert Howley , Robert Storer , Juan Vera , Luis F. Zuluaga

Polymer property performance prediction aims to forecast specific features or attributes of polymers, which has become an efficient approach to measuring their performance. However, existing machine learning models face challenges in…

Machine Learning · Computer Science 2024-09-25 Xuanming Hu , Dongjie Wang , Wangyang Ying , Yanjie Fu

We consider the problem of optimal portfolio selection under forward investment performance criteria in an incomplete market. Given multiple traded assets, the prices of which depend on multiple observable stochastic factors, we construct a…

Mathematical Finance · Quantitative Finance 2018-05-15 Levon Avanesyan , Mykhaylo Shkolnikov , Ronnie Sircar

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

In this paper, we propose a new class of distributions by exponentiating the random variables associated with the probability density functions of composite distributions. We also derive some mathematical properties of this new class of…

Methodology · Statistics 2022-04-05 Bowen Liu , Malwane M. A. Ananda

In an Ito-diffusion market, two fund managers trade under relative performance concerns. For both the asset specialization and diversification settings, we analyze the passive and competitive cases. We measure the performance of the…

Portfolio Management · Quantitative Finance 2020-11-03 Michail Anthropelos , Tianran Geng , Thaleia Zariphopoulou

The Group Quantization formalism is a scheme for constructing a functional space that is an irreducible infinite dimensional representation of the Lie algebra belonging to a dynamical symmetry group. We apply this formalism to the…

Mathematical Finance · Quantitative Finance 2021-02-18 Santiago Garcia