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We study the problem of forecasting volatility for the multifractal random walk model. In order to avoid the ill posed problem of estimating the correlation length T of the model, we introduce a limiting object defined in a quotient space;…

Statistical Finance · Quantitative Finance 2008-12-10 Jean Duchon , Raoul Robert , Vincent Vargas

We present a random walk approximation to fractional Brownian motion where the increments of the fractional random walk are defined as a weighted sum of the past increments of a Bernoulli random walk.

Probability · Mathematics 2007-08-15 Tom Lindstrøm

Temporal Point Processes (TPP) with partial likelihoods involving a latent structure often entail an intractable marginalization, thus making inference hard. We propose a novel approach to Maximum Likelihood Estimation (MLE) involving…

Machine Learning · Computer Science 2019-12-20 Amrith Setlur , Barnabás Póczós

We consider a refracted jump diffusion process having two-sided jumps with rational Laplace transforms. For such a process, by applying a straightforward but interesting approach, we derive formulas for the Laplace transform of its…

Probability · Mathematics 2016-03-31 Jiang Zhou , Lan Wu

Software for computation of maximum likelihood estimates in linear structural equation models typically employs general techniques from non-linear optimization, such as quasi-Newton methods. In practice, careful tuning of initial values is…

Computation · Statistics 2016-10-12 Mathias Drton , Christopher Fox , Y. Samuel Wang

A method is established which allows the calculation of the walk dimension for Sierpinski-type multifractals. The multifractal scaling behaviour of the average time needed to cover a distance in the mentionned multifractals is shown. For…

chao-dyn · Physics 2016-08-31 U . Bernert , K. Koepernik

(Neal and Hinton, 1998) recast maximum likelihood estimation of any given latent variable model as the minimization of a free energy functional $F$, and the EM algorithm as coordinate descent applied to $F$. Here, we explore alternative…

Computation · Statistics 2023-02-21 Juan Kuntz , Jen Ning Lim , Adam M. Johansen

The paper is split in two parts: in the first part, we construct the exact likelihood for a discretely observed rough differential equation, driven by a piecewise linear path. In the second part, we use this likelihood in order to construct…

Statistics Theory · Mathematics 2018-07-10 Anastasia Papavasiliou , Kasia B. Taylor

Multifractal properties of the distribution of topological invariants for a model of trajectories randomly entangled with a nonsymmetric lattice of obstacles are investigated. Using the equivalence of the model to random walks on a locally…

Statistical Mechanics · Physics 2009-10-31 R. Voituriez , S. Nechaev

Lagrangian Particle Tracking (LPT) enables practitioners to study various concepts in turbulence by measuring particle positions in flows of interest. This data is subject to measurement errors, and filtering techniques are applied to…

Fluid Dynamics · Physics 2026-01-16 Griffin M. Kearney , Kasey M. Laurent , Reece V. Kearney

In this note, we consider the performance of the classic method of moments for parameter estimation of symmetric variance-gamma (generalized Laplace) distributions. We do this through both theoretical analysis (multivariate delta method)…

Methodology · Statistics 2023-11-21 Adrian Fischer , Robert E. Gaunt , Andrey Sarantsev

In this paper, we present a novel iterative Monte Carlo method for approximating the stationary probability of a single state of a positive recurrent Markov chain. We utilize the characterization that the stationary probability of a state…

Data Structures and Algorithms · Computer Science 2015-12-11 Christina E. Lee , Asuman Ozdaglar , Devavrat Shah

In this paper we briefly review the recently inrtroduced Multifractal Random Walk (MRW) that is able to reproduce most of recent empirical findings concerning financial time-series : no correlation between price variations, long-range…

Statistical Mechanics · Physics 2008-12-02 E. Bacry , J. Delour , J. F. Muzy

We consider a one dimensional sub-ballistic random walk evolving in a parametric i.i.d. random environment. We study the asymptotic properties of the maximum likelihood estimator (MLE) of the parameter based on a single observation of the…

Probability · Mathematics 2014-05-13 Mikael Falconnet , Dasha Loukianova , Arnaud Gloter

A multifractal random walk (MRW) is defined by a Brownian motion subordinated by a class of continuous multifractal random measures $M[0,t], 0\le t\le1$. In this paper we obtain an extension of this process, referred to as multifractal…

Probability · Mathematics 2008-12-18 Carenne Ludeña

Ordinary differential equations are arguably the most popular and useful mathematical tool for describing physical and biological processes in the real world. Often, these physical and biological processes are observed with errors, in which…

Methodology · Statistics 2016-07-26 Sarat C. Dass , Jaeyong Lee , Kyoungjae Lee , Jonghun Park

A natural extension of a right-continuous integer-valued random walk is one which can jump to the right by one or two units. First passage times above a given fixed level then admit a tractable Laplace transform (probability generating…

Probability · Mathematics 2014-08-13 Matija Vidmar

In multivariate or spatial extremes, inference for max-stable processes observed at a large collection of locations is among the most challenging problems in computational statistics, and current approaches typically rely on less expensive…

Computation · Statistics 2015-08-20 Stefano Castruccio , Raphaël Huser , Marc Genton

The Laplace approximation has been one of the workhorses of Bayesian inference. It often delivers good approximations in practice despite the fact that it does not strictly take into account where the volume of posterior density lies.…

Machine Learning · Statistics 2022-03-02 Nikolaos Gianniotis

We introduce a class of multifractal processes, referred to as Multifractal Random Walks (MRWs). To our knowledge, it is the first multifractal processes with continuous dilation invariance properties and stationary increments. MRWs are…

Condensed Matter · Physics 2009-10-31 E. Bacry , J. Delour , J. F. Muzy