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Related papers: Marginal density expansions for diffusions and sto…

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In the compagnion paper [Marginal density expansions for diffusions and stochastic volatility, part I] we discussed density expansions for multidimensional diffusions $(X^1,...,X^d)$, at fixed time $T$ and projected to their first $l$…

Probability · Mathematics 2013-05-30 J. D. Deuschel , P. K. Friz , A. Jacquier , S. Violante

We derive a nonparametric higher-order asymptotic expansion for small-time changes of conditional characteristic functions of It\^o semimartingale increments. The asymptotics setup is of joint type: both the length of the time interval of…

Statistical Finance · Quantitative Finance 2025-02-12 Carsten H. Chong , Viktor Todorov

We study a rough differential equation driven by fractional Brownian motion with Hurst parameter $H$ $(1/4<H \le 1/2)$. Under H\"ormander's condition on the coefficient vector fields, the solution has a smooth density for each fixed time.…

Probability · Mathematics 2019-09-12 Yuzuru Inahama , Nobuaki Naganuma

We study a system of $n$ differential equations, each in dimension $d$. Only the first equation is forced by a Brownian motion and the dependence structure is such that, under a local weak H\"ormander condition, the noise propagates to the…

Probability · Mathematics 2021-09-13 Paolo Pigato

We derive a higher-order asymptotic expansion of the conditional characteristic function of the increment of an It\^o semimartingale over a shrinking time interval. The spot characteristics of the It\^o semimartingale are allowed to have…

Statistical Finance · Quantitative Finance 2024-11-12 Carsten H. Chong , Viktor Todorov

In this report we obtain higher order asymptotic expansions of solutions to wave equations with frictional and viscoelastic damping terms. Although the diffusion phenomena are dominant, differences between the solutions we deal with and…

Analysis of PDEs · Mathematics 2018-07-27 Ryo Ikehata , Hironori Michihisa

We introduce an asymptotic small noise expansion, a so called vol-of-vol expansion, for potentially infinite dimensional and rough stochastic volatility models. Thereby we extend the scope of existing results for finite dimensional models…

Probability · Mathematics 2019-12-06 Ozan Akdogan

A small time asymptotics of the density is established for a simplified (non-Gaussian, strictly hypoelliptic) second chaos process tangent to the Dudley relativistic diffusion.

Probability · Mathematics 2012-09-11 Jacques Franchi

We show that the rate of convergence of asymptotic expansions for solutions of SDEs is generally higher in the case of degenerate (or partial) diffusion compared to the elliptic case, i.e. it is higher when the Brownian motion directly acts…

Probability · Mathematics 2016-10-06 S. Pagliarani , A. Pascucci , M. Pignotti

In this paper we study the small noise asymptotic expansions for certain classes of local volatility models arising in finance. We provide explicit expressions for the involved coefficients as well as accurate estimates on the remainders.…

Probability · Mathematics 2018-09-19 Sergio ALbeverio , Francesco Cordoni , Luca Di Persio , Gregorio Pellegrini

In this paper we prove a short time asymptotic expansion of a hypoelliptic heat kernel on an Euclidean space and a compact manifold. We study the "cut locus" case, namely, the case where energy-minimizing paths which join the two points…

Probability · Mathematics 2017-04-11 Yuzuru Inahama , Setsuo Taniguchi

The one-dimensional SDE with non Lipschitz diffusion coefficient $dX_{t} = b(X_{t})dt + \sigma X_{t}^{\gamma} dB_{t}, \ X_{0}=x, \ \gamma<1$ is widely studied in mathematical finance. Several works have proposed asymptotic analysis of…

Probability · Mathematics 2014-08-26 Giovanni Conforti , Stefano De Marco , Jean-Dominique Deuschel

Motivated by marginals-mimicking results for It\^o processes via SDEs and by their applications to volatility modeling in finance, we discuss the weak convergence of the law of a hypoelliptic diffusions conditioned to belong to a target…

Pricing of Securities · Quantitative Finance 2016-06-15 Stefano De Marco , Peter Friz

This paper presents new results on the Edgeworth expansion for high frequency functionals of continuous diffusion processes. We derive asymptotic expansions for weighted functionals of the Brownian motion and apply them to provide the…

Probability · Mathematics 2013-09-10 Mark Podolskij , Nakahiro Yoshida

The expansion of the conductivity in 2-d quantum Lorentz models in terms of the scatterer density n is considered. We show that nonanalyticities in the density expansion due to scattering processes with small and large momentum transfers,…

Statistical Mechanics · Physics 2009-10-28 F. Evers , D. Belitz , Wansoo Park

We study the asymptotic behaviour of a class of small-noise diffusions driven by fractional Brownian motion, with random starting points. Different scalings allow for different asymptotic properties of the process (small-time and tail…

Probability · Mathematics 2018-12-21 B. Horvath , A. Jacquier , C. Lacombe

Much is known about asymptotic expansions for asymptotically normal distributions if these distributions are either absolutely continuous or pure lattice distributions. In this paper we begin an investigation of the discrete but non-lattice…

Probability · Mathematics 2021-03-23 Friedrich Götze , Willem R. van Zwet

In this paper, we study the Edgeworth expansion for a pre-averaging estimator of quadratic variation in the framework of continuous diffusion models observed with noise. More specifically, we obtain a second order expansion for the joint…

Statistics Theory · Mathematics 2015-12-16 Mark Podolskij , Bezirgen Veliyev , Nakahiro Yoshida

Quite general, analytical (both exact and approximate) forms for discrete probability distributions (PD's) that maximize Tsallis entropy for a fixed variance are here investigated. They apply, for instance, in a wide variety of scenarios in…

Statistical Mechanics · Physics 2009-11-11 C. Vignat , A. Plastino

Higher order fluctuation expansions for stochastic heat equations (SHE) with nonlinear, non-conservative and conservative noise are obtained. These Edgeworth-type expansions describe the asymptotic behavior of solutions in suitable joint…

Probability · Mathematics 2024-06-27 Benjamin Gess , Zhengyan Wu , Rangrang Zhang
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