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In this paper we show that Hilbert space-valued stochastic models are robust with respect to perturbation, due to measurement or approximation errors, in the underlying volatility process. Within the class of stochastic volatility modulated…

Probability · Mathematics 2022-11-30 Fred Espen Benth , Heidar Eyjolfsson

We investigate ergodic properties of generalized Ornstein--Uhlenbeck processes. In particular, we provide sufficient conditions for ergodicity, and for subexponential and exponential convergence to the invariant probability measure. We use…

Probability · Mathematics 2016-06-06 Peter Kevei

The most common stochastic volatility models such as the Ornstein-Uhlenbeck (OU), the Heston, the exponential OU (ExpOU) and Hull-White models define volatility as a Markovian process. In this work we check of the applicability of the…

Physics and Society · Physics 2009-11-13 G. L. Buchbinder , K. M. Chistilin

Spot option prices, forwards and options on forwards relevant for the commodity markets are computed when the underlying process S is modelled as an exponential of a process {\xi} with memory as e.g. a L\'evy semi-stationary process.…

Pricing of Securities · Quantitative Finance 2017-11-02 Fred Espen Benth , Asma Khedher , Michèle Vanmaele

In [16], under mild conditions, a Wiener-Hopf type factorization is derived for the exponential functional of proper L\'evy processes. In this paper, we extend this factorization by relaxing a finite moment assumption as well as by…

Probability · Mathematics 2011-07-05 Pierre Patie , Mladen Savov

Second order recurrence of a $d$-dimensional diffusion with an additive Wiener process, with switching, and with one recurrent and one transient regime and constant switching intensities is established under suitable conditions. The…

Probability · Mathematics 2024-06-25 Alexander Veretennikov

Based on an integration by parts formula for closed and convex subsets $\Gamma$ of a separable real Hilbert space $H$ with respect to a Gaussian measure, we first construct and identify the infinite dimensional analogue of the obliquely…

Probability · Mathematics 2015-12-31 Michael Röckner , Gerald Trutnau

We prove limit theorems of an entirely new type for certain long memory regularly varying stationary infinitely divisible random processes. These theorems involve multiple phase transitions governed by how long the memory is. Apart from one…

Probability · Mathematics 2018-05-23 Gennady Samorodnitsky , Yizao Wang

Identifying and quantifying memory are often critical steps in developing a mechanistic understanding of stochastic processes. These are particularly challenging and necessary when exploring processes that exhibit long-range correlations.…

Statistical Mechanics · Physics 2016-04-20 Sarah E. Marzen , James P. Crutchfield

Diesel engine particulate matter (PM) is one of the most challenging emission constituents to predict. As engines become cleaner and emissions levels drop, manufacturers need reliable methods to quantify the PM generated by production…

Applications · Statistics 2026-03-16 Maxwell Bolt , Alex Alberts , Akash S. Desai , Peter Meckl , Ilias Bilionis

We study the small-time asymptotics of sample paths of L\'evy processes and L\'evy-type processes. Namely, we investigate under which conditions the limit $$\limsup_{t \to 0} \frac{1}{f(t)} |X_t-X_0|$$ is finite resp.\ infinite with…

Probability · Mathematics 2021-10-11 Franziska Kühn

Moving average processes driven by exponential-tailed L\'evy noise are important extensions of their Gaussian counterparts in order to capture deviations from Gaussianity, more flexible dependence structures, and sample paths with jumps.…

Statistics Theory · Mathematics 2023-08-01 Zhongwei Zhang , David Bolin , Sebastian Engelke , Raphaël Huser

For an Ornstein-Uhlenbeck process driven by a double exponential jump diffusion process, we obtain formulas for the joint Laplace transform of it and its occupation times. The approach used is remarkable and can be extended to investigate…

Probability · Mathematics 2016-03-25 Jiang Zhou , Lan Wu

The Poisson process of order $i$ is a weighted sum of independent Poisson processes and is used to model the flow of clients in different services. In the paper below we study some extensions of this process, for different forms of the…

Probability · Mathematics 2019-10-01 A. Maheshwari , E. Orsingher , A. S. Sengar

Flip-flop processes refer to a family of stochastic fluid processes which converge to either a standard Brownian motion (SBM) or to a Markov modulated Brownian motion (MMBM). In recent years, it has been shown that complex distributional…

Probability · Mathematics 2021-10-12 Guy Latouche , Giang T. Nguyen , Oscar Peralta

The stochastic processes of finite length defined by recurrence relations request additional relations specifying the first terms of the process analogously to the initial conditions for the differential equations. As a general rule, in…

Data Analysis, Statistics and Probability · Physics 2015-10-05 Calin Vamos , Stefan M. Soltuz , Maria Craciun

Pointwise-in-time stability notions for Ordinary Differential Equations (ODEs) provide quantitative metrics for system performance by establishing bounds on the rate of decay of the system state in terms of initial condition -- allowing…

Optimization and Control · Mathematics 2026-02-19 Declan S. Jagt , Matthew M. Peet

Extending It\^o's formula to non-smooth functions is important both in theory and applications. One of the fairly general extensions of the formula, known as Meyer-It\^o, applies to one dimensional semimartingales and convex functions.…

Mathematical Finance · Quantitative Finance 2015-07-02 Ramin Okhrati , Uwe Schmock

We generalise multivariate subordination of L\'evy processes as introduced by Barndorff-Nielsen, Pedersen, and Sato to Hilbert space valued L\'evy processes. The processes are explicitly characterised and conditions for integrability and…

Probability · Mathematics 2018-09-07 Fred E. Benth , Paul Krühner

We consider a perturbation of a Hilbert space-valued Ornstein--Uhlenbeck process by a class of singular nonlinear non-autonomous maximal monotone time-dependent drifts. The only further assumption on the drift is that it is bounded on balls…

Probability · Mathematics 2020-06-16 Maria Gordina , Michael Röckner , Alexander Teplyaev