English
Related papers

Related papers: Computational LPPL Fit to Financial Bubbles

200 papers

The Levenberg-Marquardt algorithm is a flexible iterative procedure used to solve non-linear least squares problems. In this work we study how a class of possible adaptations of this procedure can be used to solve maximum likelihood…

Computation · Statistics 2014-10-06 Marco Giordan , Federico Vaggi , Ron Wehrens

Twenty-two significant bubbles followed by large crashes or by severe corrections in the Argentinian, Brazilian, Chilean, Mexican, Peruvian, Venezuelan, Hong-Kong, Indonesian, Korean, Malaysian, Philippine and Thai stock markets indices are…

Condensed Matter · Physics 2007-05-23 Anders Johansen , Didier Sornette

The Log-Periodic Power Law Singularity (LPPLS) model offers a general framework for capturing dynamics and predicting transition points in diverse natural and social systems. In this work, we present two calibration techniques for the LPPLS…

Computational Engineering, Finance, and Science · Computer Science 2024-05-22 Joshua Nielsen , Didier Sornette , Maziar Raissi

The famous least squares Monte Carlo (LSM) algorithm combines linear least square regression with Monte Carlo simulation to approximately solve problems in stochastic optimal stopping theory. In this work, we propose a quantum LSM based on…

Quantum Physics · Physics 2023-07-28 João F. Doriguello , Alessandro Luongo , Jinge Bao , Patrick Rebentrost , Miklos Santha

We present a significant advancement in the field of Langevin Monte Carlo (LMC) methods by introducing the Inexact Proximal Langevin Algorithm (IPLA). This novel algorithm broadens the scope of problems that LMC can effectively address…

Machine Learning · Statistics 2024-12-16 Matej Benko , Iwona Chlebicka , Jørgen Endal , Błażej Miasojedow

Motivated by localization problems such as cadastral maps refinements, we consider a generic Nonlinear Least Squares (NLS) problem of minimizing an aggregate squared fit across all nonlinear equations (measurements) with respect to the set…

Optimization and Control · Mathematics 2025-01-15 Lidija Fodor , Dusan Jakovetic , Natasa Krejic , Greta Malaspina

We propose that imitation between traders and their herding behaviour not only lead to speculative bubbles with accelerating over-valuations of financial markets possibly followed by crashes, but also to ``anti-bubbles'' with decelerating…

Statistical Mechanics · Physics 2009-10-31 A. Johansen , D. Sornette

Despite major advancements in nonlinear programming (NLP) and convex relaxations, most system operators around the world still predominantly use some form of linear programming (LP) approximation of the AC power flow equations. This is…

Optimization and Control · Mathematics 2021-07-19 Sleiman , Mhanna , Pierluigi , Mancarella

We present a quantum algorithm for fitting a linear regression model to a given data set using the least squares approach. Different from previous algorithms which yield a quantum state encoding the optimal parameters, our algorithm outputs…

Quantum Physics · Physics 2017-08-01 Guoming Wang

Cosmic Microwave Background (CMB) is an important probe for understanding the inflationary era of the Universe. We consider the Perturbed Power Law (PPL) model of inflation which is a soft deviation from Power Law (PL) inflationary model.…

Cosmology and Nongalactic Astrophysics · Physics 2015-02-03 Suvodip Mukherjee , Santanu Das , Minu Joy , Tarun Souradeep

The LIBOR Market Model (LMM) is a widely used model for pricing interest rate derivatives. While the Black-Scholes model is well-known for pricing stock derivatives such as stock options, a larger portion of derivatives are based on…

Quantum Physics · Physics 2022-07-05 Hao Tang , Wenxun Wu , Xian-Min Jin

This paper presents a new approach to solve linear and nonlinear model predictive control (MPC) problems that requires small memory footprint and throughput and is particularly suitable when the model and/or controller parameters change at…

Optimization and Control · Mathematics 2021-03-25 Nilay Saraf , Alberto Bemporad

The problem of fitting experimental data to a given model function $f(t; p_1,p_2,\dots,p_N)$ is conventionally solved numerically by methods such as that of Levenberg-Marquardt, which are based on approximating the Chi-squared measure of…

Optimization and Control · Mathematics 2017-03-14 Alberto Herrera-Gomez , R. Michael Porter

The potential of recovering the topology of a grid using solely publicly available market data is explored here. In contemporary whole-sale electricity markets, real-time prices are typically determined by solving the network-constrained…

Machine Learning · Computer Science 2014-02-17 Vassilis Kekatos , Georgios B. Giannakis , Ross Baldick

We have analyzed the risks of possible development of bubbles in the Swiss residential real estate market. The data employed in this work has been collected by comparis.ch, and carefully cleaned from duplicate records through a procedure…

General Finance · Quantitative Finance 2013-03-20 Diego Ardila , Peter Cauwels , Dorsa Sanadgol , Didier Sornette

We introduce a new diffusion process Xt to describe asset prices within an economic bubble cycle. The main feature of the process, which differs from existing models, is the drift term where a mean-reversion is taken based on an exponential…

Mathematical Finance · Quantitative Finance 2018-03-23 Angelos Dassios , Luting Li

We develop a mixed least squares Monte Carlo-partial differential equation (LSMC-PDE) method for pricing Bermudan style options on assets whose volatility is stochastic. The algorithm is formulated for an arbitrary number of assets and…

Computational Finance · Quantitative Finance 2020-06-02 David Farahany , Kenneth Jackson , Sebastian Jaimungal

Sequential Monte Carlo methods, also known as particle methods, are a widely used set of computational tools for inference in non-linear non-Gaussian state-space models. In many applications it may be necessary to compute the sensitivity,…

Statistics Theory · Mathematics 2011-06-14 Pierre Del Moral , Arnaud Doucet , Sumeetpal Singh

Least squares form one of the most prominent classes of optimization problems, with numerous applications in scientific computing and data fitting. When such formulations aim at modeling complex systems, the optimization process must…

Optimization and Control · Mathematics 2021-05-31 E. Bergou , Y. Diouane , V. Kungurtsev , C. W. Royer

The Levenberg-Marquardt algorithm is one of the most popular algorithms for finding the solution of nonlinear least squares problems. Across different modified variations of the basic procedure, the algorithm enjoys global convergence, a…

Optimization and Control · Mathematics 2020-04-08 E. Bergou , Y. Diouane , V. Kungurtsev