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We consider a $d$-dimensional continuous martingale $X(t)$ with quadratic variation matrix $\langle X\rangle_t=\int_0^t \Sigma(s)\,ds$ and develop tests for the rank of its spot covariance matrix $\Sigma(t)$, $t\in[0,1]$. The process $X$ is…

Statistics Theory · Mathematics 2026-01-14 Markus Reiß , Lars Winkelmann

A new integral with respect to an integer-valued random measure is introduced. In contrast to the finite variation integral ubiquitous in semimartingale theory (Jacod and Shiryaev, 2003, II.1.5), the new integral is closed under stochastic…

Probability · Mathematics 2021-08-26 Aleš Černý , Johannes Ruf

This papers addresses the stock option pricing problem in a continuous time market model where there are two stochastic tradable assets, and one of them is selected as a num\'eraire. It is shown that the presence of arbitrarily small…

Pricing of Securities · Quantitative Finance 2014-10-01 Nikolai Dokuchaev

We discuss nonparametric estimation of the trend coefficient in models governed by a stochastic differential equation driven by a multiplicative stochastic volatility.

Statistics Theory · Mathematics 2024-11-12 B. L. S. Prakasa Rao

In this article we relate the set of structure preserving equivalent martingale measures $(\mathcal{M})$ for financial models driven by semimartingales with conditionally independent increments to a set of measurable and integrable…

Probability · Mathematics 2017-10-09 David Criens

Estimating spot covariance is an important issue to study, especially with the increasing availability of high-frequency financial data. We study the estimation of spot covariance using a kernel method for high-frequency data. In…

Methodology · Statistics 2019-05-21 Konul Mustafayeva , Weining Wang

New proofs are given of the existence of the compensator (or dual predictable projection) of a locally integrable c\'adl\'ag adapted process of finite variation and of the existence of the quadratic variation process for a c\'adl\'ag local…

Probability · Mathematics 2014-10-28 Alexander Sokol

We develop a practical framework for distinguishing diffusive stochastic processes from deterministic signals using only a single discrete time series. Our approach is based on classical excursion and crossing theorems for continuous…

Machine Learning · Statistics 2026-05-19 Sunia Tanweer , Firas A. Khasawneh

This paper focuses on the pricing of the variance swap in an incomplete market where the stochastic interest rate and the price of the stock are respectively driven by Cox-Ingersoll-Ross model and Heston model with simultaneous L\'{e}vy…

Pricing of Securities · Quantitative Finance 2018-03-15 Ben-zhang Yang , Jia Yue , Nan-jing Huang

We consider a 2D stochastic modified Swift-Hohenberg equations with multiplicative noise and periodic boundary. First, we establish the existence of local and global martingale and pathwise solutions in the regular Sobolev space $H^{2m}$…

Dynamical Systems · Mathematics 2024-04-24 Jintao Wang , Xiaoqian Zhang , Chunqiu Li

While absence of arbitrage in frictionless financial markets requires price processes to be semimartingales, non-semimartingales can be used to model prices in an arbitrage-free way, if proportional transaction costs are taken into account.…

Mathematical Finance · Quantitative Finance 2016-08-30 Christoph Czichowsky , Walter Schachermayer

A signal processing method designed for the detection of linear (coherent) behaviors among random fluctuations is presented. It is dedicated to the study of data recorded from nonlinear physical systems. More precisely the method is suited…

Chaotic Dynamics · Physics 2013-10-03 F. Briolle , B. Ricaud , X. Leoncini

We study the nonparametric calibration of exponential L\'{e}vy models with infinite jump activity. In particular our analysis applies to self-decomposable processes whose jump density can be characterized by the $k$-function, which is…

Statistics Theory · Mathematics 2014-02-05 Mathias Trabs

Fractional Brownian motion is a non-Markovian Gaussian process $X_t$, indexed by the Hurst exponent $H$. It generalises standard Brownian motion (corresponding to $H=1/2$). We study the probability distribution of the maximum $m$ of the…

Statistical Mechanics · Physics 2015-11-25 Mathieu Delorme , Kay Joerg Wiese

We introduce a variational theory for processes adapted to the multi-dimensional Brownian motion filtration. The theory provides a differential structure which describes the infinitesimal evolution of Wiener functionals at very small…

Probability · Mathematics 2017-07-13 Alberto Ohashi , Dorival Leão , Alexandre B. Simas

This paper is devoted to studying the weak convergence for a slow-fast system with jumps modulated by Markovian switching regimes with the martingale method. However, due to the coexistence of fast component and Markovian switching regimes,…

Dynamical Systems · Mathematics 2024-03-13 Yong Xu , Xiaoyu Yang , Bin Pei , Yuzhen Bai

We investigate the Poisson regression method for Markov and semi-Markov jump processes from a nonparametric angle, allowing the lengths of the time and duration intervals in the partition to vary with the number of observations. Imposing no…

Statistics Theory · Mathematics 2026-05-06 Martin Bladt , Rasmus Frigaard Lemvig

We put forward a measure based on Gaussian steering to quantify the non-Markovianity of continuous-variable (CV) Gaussian quantum channels. We employ the proposed measure to assess and compare the non-Markovianity of a quantum Brownian…

Quantum Physics · Physics 2021-11-17 Massimo Frigerio , Samaneh Hesabi , Davood Afshar , Matteo G. A. Paris

A compound Poisson process whose parameters are all unknown is observed at finitely many equispaced times. Nonparametric estimators of the jump and L\'evy distributions are proposed and functional central limit theorems using the uniform…

Statistics Theory · Mathematics 2017-02-06 Alberto J. Coca

Statistical inference for stochastic processes with time-varying spectral characteristics has received considerable attention in recent decades. We develop a nonparametric test for stationarity against the alternative of a smoothly…

Statistics Theory · Mathematics 2010-01-14 Efstathios Paparoditis
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