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This paper develops a mathematical framework for the analysis of continuous-time trading strategies which, in contrast to the classical setting of continuous-time mathematical finance, does not rely on stochastic integrals or other…

Mathematical Finance · Quantitative Finance 2016-02-17 Candia Riga

Conditioning is crucial in applied science when inference involving time series is involved. Belief calculus is an effective way of handling such inference in the presence of epistemic uncertainty -- unfortunately, different approaches to…

Artificial Intelligence · Computer Science 2021-04-22 Fabio Cuzzolin

A time-dependent product is introduced between the observables of a dissipative quantum system, that accounts for the effects of dissipation on observables and commutators. In the $t \to \infty$ limit this yields a contracted algebra. The…

Quantum Physics · Physics 2012-05-07 Dariusz Chruściński , Paolo Facchi , Giuseppe Marmo , Saverio Pascazio

An algebraic framework in which to study infinite sums is proposed, complementing and augmenting the usual topological tools. The framework subsumes numerous examples in the literature. It is developed using many varied examples, with a…

Rings and Algebras · Mathematics 2026-04-28 Pace P. Nielsen

In Financial Signal Processing, multiple time series such as financial indicators, stock prices and exchange rates are strongly coupled due to their dependence on the latent state of the market and therefore they are required to be jointly…

Statistical Finance · Quantitative Finance 2020-02-17 Taco de Wolff , Alejandro Cuevas , Felipe Tobar

Large language models are reshaping quantitative investing by turning unstructured financial information into evidence-grounded signals and executable decisions. This survey synthesizes research with a focus on equity return prediction and…

Portfolio Management · Quantitative Finance 2025-10-08 Weilong Fu

We present a new framework for modeling the statistical behavior of both fully developed turbulence and short-term dynamics of financial markets based on the nonextensive thermostatistics proposed by Tsallis. We also show that intermittency…

Condensed Matter · Physics 2007-05-23 F. M. Ramos , C. Rodrigues Neto , R. R. Rosa

Starting from the characterization of the past time evolution of market prices in terms of two fundamental indicators, price velocity and price acceleration, we construct a general classification of the possible patterns characterizing the…

Statistical Mechanics · Physics 2009-10-31 J. V. Andersen , S. Gluzman , D. Sornette

Financial networks have become extremely useful in characterizing the structure of complex financial systems. Meanwhile, the time evolution property of the stock markets can be described by temporal networks. We utilize the temporal network…

Statistical Finance · Quantitative Finance 2018-07-04 Longfeng Zhao , Gang-Jin Wang , Mingang Wang , Weiqi Bao , Wei Li , H. Eugene Stanley

Conventional embedding-based models approach event time prediction in temporal knowledge graphs (TKGs) as a ranking problem. However, they often fall short in capturing essential temporal relationships such as order and distance. In this…

Computation and Language · Computer Science 2024-01-30 Siheng Xiong , Yuan Yang , Ali Payani , James C Kerce , Faramarz Fekri

Predicting volatility in financial markets, including stocks, index ETFs, foreign exchange, and cryptocurrencies, remains a challenging task due to the inherent complexity and non-linear dynamics of these time series. In this study, I apply…

Statistical Finance · Quantitative Finance 2024-10-17 Alex Li

We study a new measure of codependency in the second moment of a continuous-time multivariate asset price process, which we name the realized copula of volatility. The statistic is based on local volatility estimates constructed from…

Econometrics · Economics 2026-04-22 Kim Christensen , Wenjing Liu , Zhi Liu , Yoann Potiron

We consider the scenario where the parameters of a probabilistic model are expected to vary over time. We construct a novel prior distribution that promotes sparsity and adapts the strength of correlation between parameters at successive…

Machine Learning · Statistics 2015-11-10 Dani Yogatama , Bryan R. Routledge , Noah A. Smith

In complex systems, external parameters often determine the phase in which the system operates, i.e., its macroscopic behavior. For nearly a century, statistical physics has extensively studied systems' transitions across phases,…

An extension of the idea of state tameness is presented in a dynamic framework. The proposed model for financial markets is rich enough to provide analytical tools that are mostly obtained in models that arise as the solution of SDEs with…

Probability · Mathematics 2008-12-02 Jaime A. Londoño

Quantitative structuring is a rigorous framework for the design of financial products. We show how it incorporates traditional investment ideas while supporting a more accurate expression of clients' views. We touch upon adjacent topics…

General Finance · Quantitative Finance 2017-01-10 Andrei N. Soklakov

Financial institutions and insurance companies that analyze the evolution and sources of profits and losses often look at risk factors only at discrete reporting dates, ignoring the detailed paths. Continuous-time decompositions avoid this…

Mathematical Finance · Quantitative Finance 2024-12-20 Gero Junike , Hauke Stier , Marcus C. Christiansen

Modern evolvements of the technologies have been leading to a profound influence on the financial market. The introduction of constituents like Exchange-Traded Funds, and the wide-use of advanced technologies such as algorithmic trading,…

Statistical Finance · Quantitative Finance 2021-08-20 Liao Zhu

This paper develops a comprehensive theoretical framework that imports concepts from stochastic thermodynamics to model price impact and characterize the feasibility of round-trip arbitrage in financial markets. A trading cycle is treated…

Mathematical Finance · Quantitative Finance 2025-12-04 Amit Kumar Jha

We investigate the behavior of systems of interacting diffusion processes, known as volatility-stabilized market models in the mathematical finance literature, when the number of diffusions tends to infinity. We show that, after an…

Probability · Mathematics 2011-02-18 Mykhaylo Shkolnikov