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This thesis evaluates most of the extreme mixture models and methods that have appended in the literature and implements them in the context of finance and insurance. The paper also reviews and studies extreme value theory, time series,…

General Economics · Economics 2024-07-09 Yujuan Qiu

We develop two models for Bayesian estimation and selection in high-order, discrete-state Markov chains. Both are based on the mixture transition distribution, which constructs a transition probability tensor with additive mixing of…

Methodology · Statistics 2021-09-17 Matthew Heiner , Athanasios Kottas

This paper introduced key aspects of applying Machine Learning (ML) models, improved trading strategies, and the Quasi-Reversibility Method (QRM) to optimize stock option forecasting and trading results. It presented the findings of the…

Computational Finance · Quantitative Finance 2022-11-30 Zheng Cao , Raymond Guo , Wenyu Du , Jiayi Gao , Kirill V. Golubnichiy

We propose a pairs trading model that incorporates a time-varying volatility of the Constant Elasticity of Variance type. Our approach is based on stochastic control techniques; given a fixed time horizon and a portfolio of two…

Optimization and Control · Mathematics 2021-11-05 T. N. Li , A. Tourin

This letter analyses the effective capacity of communications system using unified models. In order to obtain a simple closed-form mathematically tractable expression, two different unified approximate models have been used. The mixture…

Information Theory · Computer Science 2018-04-26 H. Al-Hmood , H. S. Al-Raweshidy

The aim of this paper is to explain how parameters adjustments can be integrated in the design or the control of automates of trading. Typically, we are interested by the online estimation of the market impacts generated by robots or single…

Computational Finance · Quantitative Finance 2017-12-06 N Baradel , B Bouchard , Ngoc Minh Dang

Auto-bidding systems aim to maximize advertiser value over long horizons under budget constraints and ratio targets such as cost-per-acquisition, yet future traffic and auction dynamics are non-stationary and uncertain. Existing approaches…

Artificial Intelligence · Computer Science 2026-05-28 Eunseok Yang , Xingdong Zuo , Kyung-Min Kim

The distribution of price returns for a class of uncorrelated diffusive dynamics is considered. The basic assumptions are (1) that there is a "consensus" value associated with a stock, and (2) that the rate of diffusion depends on the…

Other Condensed Matter · Physics 2008-12-02 A. L. Alejandro-Quinones , K. E. Bassler , M. Field , J. L. McCauley , M. Nicol , I. Timofeyef , A. Torok , G. H. Gunaratne

We present an optimal mass transport framework on the space of Gaussian mixture models, which are widely used in statistical inference. Our method leads to a natural way to compare, interpolate and average Gaussian mixture models.…

Probability · Mathematics 2018-02-01 Yongxin Chen , Tryphon T. Georgiou , Allen Tannenbaum

This paper provides a unique approach with AI algorithms to predict emerging stock markets volatility. Traditionally, stock volatility is derived from historical volatility,Monte Carlo simulation and implied volatility as well. In this…

Computational Finance · Quantitative Finance 2025-08-27 Zong Ke , Jingyu Xu , Zizhou Zhang , Yu Cheng , Wenjun Wu

Semi- and non-parametric mixture of regressions are a very useful flexible class of mixture of regressions in which some or all of the parameters are non-parametric functions of the covariates. These models are, however, based on the…

Methodology · Statistics 2026-01-21 Peterson Mambondimumwe , Sphiwe B. Skhosana , Najmeh Nakhaei Rad

Nested error regression models are useful tools for analysis of grouped data, especially in the case of small area estimation. This paper suggests a nested error regression model using uncertain random effects in which the random effect in…

Methodology · Statistics 2017-02-28 Shonosuke Sugasawa , Tatsuya Kubokawa

Machine learning models can be improved by adapting them to respect existing background knowledge. In this paper we consider multitask Gaussian processes, with background knowledge in the form of constraints that require a specific sum of…

Machine Learning · Statistics 2023-02-02 Philipp Pilar , Carl Jidling , Thomas B. Schön , Niklas Wahlström

Determining the number G of components in a finite mixture distribution is an important and difficult inference issue. This is a most important question, because statistical inference about the resulting model is highly sensitive to the…

Methodology · Statistics 2018-12-27 Gilles Celeux , Sylvia Fruewirth-Schnatter , Christian P. Robert

Many processes in chemistry and physics take place on timescales that cannot be explored using standard molecular dynamics simulations. This renders the use of enhanced sampling mandatory. Here we introduce an enhanced sampling method that…

Chemical Physics · Physics 2020-06-12 Jayashrita Debnath , Michele Parrinello

Large tick assets, i.e. assets where one tick movement is a significant fraction of the price and bid-ask spread is almost always equal to one tick, display a dynamics in which price changes and spread are strongly coupled. We introduce a…

Trading and Market Microstructure · Quantitative Finance 2015-06-17 Gianbiagio Curato , Fabrizio Lillo

We propose flexible Gaussian representations for conditional cumulative distribution functions and give a concave likelihood criterion for their estimation. Optimal representations satisfy the monotonicity property of conditional cumulative…

Econometrics · Economics 2025-04-22 Richard Spady , Sami Stouli

In this article, we discuss the composite likelihood estimation of sparse Gaussian graphical models. When there are symmetry constraints on the concentration matrix or partial correlation matrix, the likelihood estimation can be…

Computation · Statistics 2012-08-22 Xin Gao , Helene Massam

In this paper, we study the problem of learning multi-dimensional Gaussian Mixture Models (GMMs), with a specific focus on model order selection and efficient mixing distribution estimation. We first establish an information-theoretic lower…

Machine Learning · Statistics 2026-03-23 Xinyu Liu , Hai Zhang

We consider the problem of trajectory planning in an environment comprised of a set of obstacles with uncertain locations. While previous approaches model the uncertainties with a prescribed Gaussian distribution, we consider the realistic…

Systems and Control · Computer Science 2021-01-12 Vasileios Lefkopoulos , Maryam Kamgarpour