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Stylized facts can be regarded as constraints for any modeling attempt of price dynamics on a financial market, in that an empirically reasonable model has to reproduce these stylized facts at least qualitatively. The dynamics of market…

Computational Finance · Quantitative Finance 2010-04-12 Stefan Reimann , Andreas Tupak

Statistical analyses of finite sample distributions usually assume that fluctuations are self-averaging, i.e. that they are statistically similar in different regions of the given sample volume. By using the scale-length method, we test…

Cosmology and Nongalactic Astrophysics · Physics 2010-11-02 Francesco Sylos Labini , Nikolay L. Vasilyev , Yurij V. Baryshev

We study the nature of fluctuations in variety of price indices involving companies listed on the New York Stock Exchange. The fluctuations at multiple scales are extracted through the use of wavelets belonging to Daubechies basis. The fact…

Statistical Finance · Quantitative Finance 2013-03-26 Prasanta K. Panigrahi , Sayantan Ghosh , Arjun Banerjee , Jainendra Bahadur , P. Manimaran

Characterising the stratosphere as a turbulent system, temporal fluctuations often show different correlations for different time scales as well as intermittent behaviour that cannot be captured by a single scaling exponent. In this study,…

Atmospheric and Oceanic Physics · Physics 2016-09-28 Gualtiero Badin , Daniela I. V. Domeisen

We study the one-point probability distribution functions (PDFs) of the peculiar velocity and the density fluctuation in a cosmological fluid. Within the perturbative approach to the structure formation scenario, the effect of ``pressure''…

Astrophysics · Physics 2009-11-11 Takayuki Tatekawa

In this article we study the trapped motion of a molecule undergoing diffusivity fluctuations inside a harmonic potential. For the same diffusing-diffusivity process, we investigate two possible interpretations. Depending on whether…

Statistical Mechanics · Physics 2023-01-04 Yann Lanoiselée , Aleksander Stanislavsky , Davide Calebiro , Aleksander Weron

Fractal structures and non-Gaussian velocity distributions are characteristic properties commonly observed in virialized self-gravitating systems such as galaxies or interstellar molecular clouds. We study the origin of these properties…

Astrophysics · Physics 2019-08-17 Yasuhide Sota , Osamu Iguchi , Masahiro Morikawa , Takayuki Tatekawa , Kei-ichi Maeda

Deterministic diffusive systems such as the periodic Lorentz gas, multi-baker map, as well as spatially periodic systems of interacting particles, have non-equilibrium stationary states with fractal properties when put in contact with…

Statistical Mechanics · Physics 2009-08-28 Felipe Barra , Pierre Gaspard , Thomas Gilbert

We compare our results on empirical analysis of financial data with simulations of two stochastic models of the dynamics of stock market prices. The two models are (i) the truncated L\'evy flight recently introduced by us and (ii) the…

Statistical Mechanics · Physics 2015-06-25 Rosario N. Mantegna , H. Eugene Stanley

We consider work fluctuation relations (FRs) for generic types of dynamics generating anomalous diffusion: Levy flights, long-correlated Gaussian processes and time-fractional kinetics. By combining Langevin and kinetic approaches we…

Statistical Mechanics · Physics 2009-03-24 A. V. Chechkin , R. Klages

It is well known that the probability distribution of high-frequency financial returns is characterized by a leptokurtic, heavy-tailed shape. This behavior undermines the typical assumption of Gaussian log-returns behind the standard…

Statistical Finance · Quantitative Finance 2023-06-14 Federica De Domenico , Giacomo Livan , Guido Montagna , Oreste Nicrosini

Exponential L\'evy processes can be used to model the evolution of various financial variables such as FX rates, stock prices, etc. Considerable efforts have been devoted to pricing derivatives written on underliers governed by such…

Pricing of Securities · Quantitative Finance 2012-06-29 Leif Andersen , Alexander Lipton

The two-dimensional multifractal detrended fluctuation analysis is applied to reveal the multifractal properties of the fracture surfaces of foamed polypropylene/polyethylene blends at different temperatures. Nice power-law scaling…

Materials Science · Physics 2009-01-03 Chuang Liu , Xiu-Lei Jiang , Tao Liu , Ling Zhao , Wei-Xing Zhou , Wei-Kang Yuan

An analytical expression of probability density function (PDF) of velocity fluctuation is derived with the help of the statistics based on generalized entropy (the Tsallis entropy or the R\'{e}nyi entropy). It is revealed that the derived…

Statistical Mechanics · Physics 2007-05-23 N. Arimitsu , T. Arimitsu

We study the dependence of volatility on the stock price in the stochastic volatility framework on the example of the Heston model. To be more specific, we consider the conditional expectation of variance (square of volatility) under fixed…

Pricing of Securities · Quantitative Finance 2011-07-29 Mikhail Martynov , Olga Rozanova

Highly nonlinear behavior of a system of discrete sites on a lattice is observed when a specific feedback loop is introduced into models employing coupled map lattices, quantum cellular automata, or the real-valued analogues of the latter.…

Adaptation and Self-Organizing Systems · Physics 2007-05-23 Siegfried Fussy , Gerhard Groessing , Herbert Schwabl

We investigate the time behavior of the fragmentation model with Kolmogorov time scales and space contraction resembling the random $\beta$-model of turbulence. The space averages computed at any instant using the entire spatial realization…

Condensed Matter · Physics 2007-05-23 Sergei E. Esipov

In small systems where relevant energies are comparable to thermal agitation, fluctuations are of the order of average values. In systems in thermodynamical equilibrium, the variance of these fluctuations can be related to the dissipation…

Statistical Mechanics · Physics 2007-05-23 Nicolas Garnier , Ciliberto Sergio

Anomalous dynamics characterized by non-Gaussian probability distributions (PDFs) and/or temporal long-range correlations can cause subtle modifications of conventional fluctuation relations. As prototypes we study three variants of a…

Statistical Mechanics · Physics 2015-07-16 P. Dieterich , R. Klages , A. V. Chechkin

We model the price of a stock via a Lang\'{e}vin equation with multi-dimensional fluctuations coupled in the price and in time. We generalize previous models in that we assume that the fluctuations conditioned on the time step are compound…

Mathematical Physics · Physics 2008-12-10 Przemyslaw Repetowicz , Peter Richmond
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