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This study seeks to advance the understanding and prediction of stock market return uncertainty through the application of advanced deep learning techniques. We introduce a novel deep learning model that utilizes a Gaussian mixture…

Risk Management · Quantitative Finance 2025-03-11 Yanlong Wang , Jian Xu , Shao-Lun Huang , Danny Dongning Sun , Xiao-Ping Zhang

We show that deterministic systems with strong nonlinearities seem to be more appropriate to model sandpiles than stochastic systems or deterministic systems in which discontinuities are the only nonlinearity. In particular, we are able to…

Statistical Mechanics · Physics 2009-11-10 Maria de Sousa Vieira

We investigate the volatility return intervals in the NYSE and FOREX markets. We explain previous empirical findings using a model based on the interacting agent hypothesis instead of the widely-used efficient market hypothesis. We derive…

General Finance · Quantitative Finance 2016-10-26 Vygintas Gontis , Shlomo Havlin , Aleksejus Kononovicius , Boris Podobnik , H. Eugene Stanley

Modelling accurately financial price variations is an essential step underlying portfolio allocation optimization, derivative pricing and hedging, fund management and trading. The observed complex price fluctuations guide and constraint our…

Statistical Mechanics · Physics 2009-10-30 A. Arneodo , J. -F. Muzy , D. Sornette

The discrete-time GARCH methodology which has had such a profound influence on the modelling of heteroscedasticity in time series is intuitively well motivated in capturing many `stylized facts' concerning financial series, and is now…

Statistical Finance · Quantitative Finance 2008-12-18 Ross A. Maller , Gernot Müller , Alex Szimayer

We propose a novel probabilistic model to facilitate the learning of multivariate tail dependence of multiple financial assets. Our method allows one to construct from known random vectors, e.g., standard normal, sophisticated joint…

Risk Management · Quantitative Finance 2020-01-14 Xing Yan , Qi Wu , Wen Zhang

This paper explores the estimation of a dynamic spatiotemporal autoregressive conditional heteroscedasticity (ARCH) model. The log-volatility term in this model can depend on (i) the spatial lag of the log-squared outcome variable, (ii) the…

Methodology · Statistics 2023-12-12 Philipp Otto , Osman Doğan , Süleyman Taşpınar

In financial markets, low prices are generally associated with high volatilities and vice-versa, this well known stylized fact usually being referred to as leverage effect. We propose a local volatility model, given by a stochastic…

Computational Finance · Quantitative Finance 2019-02-25 Antoine Lejay , Paolo Pigato

The role of the feedback effect on physical reservoir computing is studied theoretically by solving the vortex-core dynamics in a nanostructured ferromagnet. Although the spin-transfer torque due to the feedback current makes the vortex…

Mesoscale and Nanoscale Physics · Physics 2020-06-25 Terufumi Yamaguchi , Nozomi Akashi , Sumito Tsunegi , Hitoshi Kubota , Kohei Nakajima , Tomohiro Taniguchi

This paper intends to meet recent claims for the attainment of more rigorous statistical methodology within the econophysics literature. To this end, we consider an econometric approach to investigate the outcomes of the log-periodic model…

Statistical Finance · Quantitative Finance 2009-11-13 L. Gazola , C. Fernandes , A. Pizzinga , R. Riera

Time series forecasting represents a significant and challenging task across various fields. Recently, methods based on mode decomposition have dominated the forecasting of complex time series because of the advantages of capturing local…

Methodology · Statistics 2023-11-30 Zhengtao Gui , Haoyuan Li , Sijie Xu , Yu Chen

This paper captures irregularities in financial time series data, particularly stock prices, in the presence of COVID-19 shock. We conjectured that jumps and irregularities are embedded in stock data due to the pandemic shock, which brings…

Computational Engineering, Finance, and Science · Computer Science 2023-11-23 Leonard Mushunje , David Allen , Shelton Peiris

In this paper we propose a new model for volatility fluctuations in financial time series. This model relies on a non-stationary gaussian process that exhibits aging behavior. It turns out that its properties, over any finite time interval,…

Statistical Finance · Quantitative Finance 2015-06-12 J. F. Muzy , R. Baile , E. Bacry

We investigate spectral properties of quantum graphs in the form of a periodic chain of rings with a connecting link between each adjacent pair, assuming that wave functions at the vertices are matched through conditions manifestly…

Mathematical Physics · Physics 2022-07-12 Marzieh Baradaran , Pavel Exner , Milos Tater

In this paper we show for the first time the phenomenon of negative reflection in a simple mechanical structure. The latter is a grating of fixed inclusions embedded in a linear elastic matrix. Numerical analyses for out-of-plane shear…

Classical Physics · Physics 2023-08-02 Bibinur Meirbekova , Lorenzo Morini , Michele Brun , Giorgio Carta

Dynamical systems in nature such as fluid flows, heart beat patterns, rainfall variability, stock market price fluctuations, etc. exhibit selfsimilar fractal fluctuations on all scales in space and time. Power spectral analyses of fractal…

General Physics · Physics 2007-05-23 A. M. Selvam

Estimating conditional quantiles of financial time series is essential for risk management and many other applications in finance. It is well-known that financial time series display conditional heteroscedasticity. Among the large number of…

Methodology · Statistics 2016-10-25 Yao Zheng , Qianqian Zhu , Guodong Li , Zhijie Xiao

In an absorptive system the Wigner reaction $K-$matrix (directly related to the impedance matrix in acoustic or electromagnetic wave scattering) is non-selfadjoint, hence its eigenvalues are complex. The most interesting regime arises when…

Disordered Systems and Neural Networks · Physics 2023-08-11 Yan V. Fyodorov

We propose a set of dependence measures that are non-linear, local, invariant to a wide range of transformations on the marginals, can show tail and risk asymmetries, are always well-defined, are easy to estimate and can be used on any…

Statistical Finance · Quantitative Finance 2023-09-04 Aleksy Leeuwenkamp , Wentao Hu

In this paper, we introduce quantile coherency to measure general dependence structures emerging in the joint distribution in the frequency domain and argue that this type of dependence is natural for economic time series but remains…

Statistics Theory · Mathematics 2018-12-31 Jozef Baruník , Tobias Kley
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