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We study the strong approximation of a rough volatility model, in which the log-volatility is given by a fractional Ornstein-Uhlenbeck process with Hurst parameter $H<1/2$. Our methods are based on an equidistant discretization of the…

Probability · Mathematics 2016-06-14 Andreas Neuenkirch , Taras Shalaiko

This paper investigates the convergence of Wong--Zakai approximations to regime-switching stochastic differential equations, generated by a collection of finite-variation approximations to Brownian motion. We extend the results of Nguyen…

Probability · Mathematics 2023-04-21 Jasper Barr , Giang T. Nguyen , Oscar Peralta

Fractional Brownian motion is a Gaussian stochastic process with stationary, long-time correlated increments and is frequently used to model anomalous diffusion processes. We study numerically fractional Brownian motion confined to a finite…

Statistical Mechanics · Physics 2019-03-22 T. Guggenberger , G. Pagnini , T. Vojta , R. Metzler

The Wiener's path integral plays a central role in the studies of Brownian motion. Here we derive exact path-integral representations for the more general \emph{fractional} Brownian motion (fBm) and for its time derivative process -- the…

Statistical Mechanics · Physics 2022-12-28 Baruch Meerson , Olivier Bénichou , Gleb Oshanin

We derive explicit tail-estimates for the Jacobian of the solution flow for stochastic differential equations driven by Gaussian rough paths. In particular, we deduce that the Jacobian has finite moments of all order for a wide class of…

Probability · Mathematics 2013-07-26 Thomas Cass , Christian Litterer , Terry Lyons

In [Han \& Schied, 2023, \textit{arXiv 2307.02582}], an easily computable scale-invariant estimator $\widehat{\mathscr{R}}^s_n$ was constructed to estimate the Hurst parameter of the drifted fractional Brownian motion $X$ from its…

Statistical Finance · Quantitative Finance 2025-09-09 Xiyue Han , Alexander Schied

In this paper, we investigate the optimal strong convergence rate of numerical approximations for the Cox--Ingersoll--Ross model driven by fractional Brownian motion with Hurst parameter $H\in(1/2,1)$. To deal with the difficulties caused…

Numerical Analysis · Mathematics 2020-04-17 Jialin Hong , Chuying Huang , Minoo Kamrani , Xu Wang

We construct fractional Brownian motion (fBm), sub-fractional Brownian motion (sub-fBm), negative sub-fractional Brownian motion (nsfBm) and the odd part of fBm in the sense of Dzhaparidze and van Zanten (2004) by means of limiting…

Probability · Mathematics 2012-03-14 Tomasz Bojdecki , Anna Talarczyk

We study fractional Brownian motion (fBm) characterized by the Hurst exponent H. Using a Monte Carlo sampling technique, we are able to numerically generate fBm processes with an absorbing boundary at the origin at discrete times for a…

Statistical Mechanics · Physics 2015-06-15 Alexander K. Hartmann , Satya N. Majumdar , Alberto Rosso

We present strong approximations with rate of convergence for the solution of a stochastic differential equation of the form $$ dX_t=b(X_t)dt+\sigma(X_t)dB^H_t, $$ where $b\in C^1_b$, $\sigma \in C^2_b$, $B^H$ is fractional Brownian motion…

Probability · Mathematics 2011-06-17 J. Garzón , L. G. Gorostiza , J. A. León

Approximations of fractional Brownian motion using Poisson processes whose parameter sets have the same dimensions as the approximated processes have been studied in the literature. In this paper, a special approximation to the…

Statistics Theory · Mathematics 2012-01-05 Yuqiang Li , Hongshuai Dai

In this article, we consider the so-called modified Euler scheme for stochastic differential equations (SDEs) driven by fractional Brownian motions (fBm) with Hurst parameter $\frac13<H<\frac12$. This is a first-order time-discrete…

Probability · Mathematics 2017-03-13 Yanghui Liu , Samy Tindel

Fractional Brownian motion is a Gaussian process x(t) with zero mean and two-time correlations <x(t)x(s)> ~ t^{2H} + s^{2H} - |t-s|^{2H}, where H, with 0<H<1 is called the Hurst exponent. For H = 1/2, x(t) is a Brownian motion, while for H…

Statistical Mechanics · Physics 2013-05-29 Kay Jörg Wiese , Satya N. Majumdar , Alberto Rosso

In this paper, we will present a strong (or pathwise) approximation of standard Brownian motion by a class of orthogonal polynomials. The coefficients that are obtained from the expansion of Brownian motion in this polynomial basis are…

Numerical Analysis · Mathematics 2020-05-21 James Foster , Terry Lyons , Harald Oberhauser

In this paper, by using Girsanov's transformation and the property of the corresponding reference stochastic differential equations, we investigate weak existence and uniqueness of solutions and weak convergence of Euler-Maruyama scheme to…

Probability · Mathematics 2019-07-05 Yongqiang Suo , Chenggui Yuan , shaoqin Zhang

This work is to give the large deviation for a slow-fast system with level 3 random geometric rough path. Different from that driver rough path is of level 2, now the driver path comes from an anisotropic rough path that is lifted from the…

Probability · Mathematics 2025-09-24 Xiaoyu Yang , Yong Xu

We consider the problem of efficient estimation for the drift of fractional Brownian motion $B^H:=(B^H_t)_{t\in[0,T]}$ with hurst parameter $H$ less than 1/2. We also construct superefficient James-Stein type estimators which dominate,…

Probability · Mathematics 2009-05-12 Es-Sebaiy Khalifa , Idir Ouassou , Youssef Ouknine

We study simple approximations to fractional Gaussian noise and fractional Brownian motion. The approximations are based on spectral properties of the noise. They allow one to consider the noise as the result of fractional…

Statistical Mechanics · Physics 2007-05-23 A. V. Chechkin , V. Yu. Gonchar

We study a class of linear first and second order partial differential equations driven by weak geometric $p$-rough paths, and prove the existence of a unique solution for these equations. This solution depends continuously on the driving…

Analysis of PDEs · Mathematics 2008-03-24 Michael Caruana , Peter Friz

This article is concerned with stochastic differential equations driven by a $d$ dimensional fractional Brownian motion with Hurst parameter $H>1/4$, understood in the rough paths sense. Whenever the coefficients of the equation satisfy a…

Probability · Mathematics 2020-08-03 Xi Geng , Cheng Ouyang , Samy Tindel