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This paper presents a novel approach to stochastic volatility (SV) modeling by utilizing nonparametric techniques that enhance our ability to capture the volatility of financial time series data, with a particular emphasis on the…

Computation · Statistics 2025-02-18 Yudong Feng , Ashis Gangopadhyay

Our article considers a regression model with observed factors. The observed factors have a flexible stochastic volatility structure that has separate dynamics for the volatilities and the correlation matrix. The correlation matrix of the…

Other Statistics · Statistics 2011-07-14 Yu-Cheng Ku , Peter Bloomfield , Robert Kohn

We describe a method for analyzing the stochasticity in the non-stationary data for the beat-to-beat fluctuations in the heart rates of healthy subjects, as well as those with congestive heart failure. The method analyzes the returns time…

Biological Physics · Physics 2007-05-23 F. Ghasemi , Muhammad Sahimi , J. Peinke , M. Reza Rahimi Tabar

A data-driven methodology is proposed to model the distribution of multivariate stochastic trajectories from an observed sample. As a first step, each trajectory in the sample is reduced to a vector of features by means of Functional…

Fluid Dynamics · Physics 2026-05-15 Romain Hascoët

This paper proposes and analyzes fully data driven methods for inference about the mean function of a stochastic process from a sample of independent trajectories of the process, observed at discrete time points and corrupted by additive…

Methodology · Statistics 2009-05-20 F. Bunea , M. H. Wegkamp , A. E. Ivanescu

In functional data analysis, replicate observations of a smooth functional process and its derivatives offer a unique opportunity to flexibly estimate continuous-time ordinary differential equation models. Ramsay (1996) first proposed to…

Methodology · Statistics 2024-06-27 Edward Gunning , Giles Hooker

We consider systems with memory represented by stochastic functional differential equations. Substantially, these are stochastic differential equations with coefficients depending on the past history of the process itself. Such coefficients…

Probability · Mathematics 2017-01-24 David R. Baños , Giulia Di Nunno , Hannes Haferkorn , Frank Proske

We study a nonparametric Bayesian approach to estimation of the volatility function of a stochastic differential equation driven by a gamma process. The volatility function is modelled a priori as piecewise constant, and we specify a gamma…

Statistics Theory · Mathematics 2023-10-18 Denis Belomestny , Shota Gugushvili , Moritz Schauer , Peter Spreij

This paper provides a semiparametric model of estimating states of the volatility defined as the squared diffusion coefficient of a stochastic differential equation. Without assuming any functional form of the volatility function, we…

Statistics Theory · Mathematics 2007-07-18 I. Shoji

We focus on variational inference in dynamical systems where the discrete time transition function (or evolution rule) is modelled by a Gaussian process. The dominant approach so far has been to use a factorised posterior distribution,…

Machine Learning · Statistics 2018-12-17 Alessandro Davide Ialongo , Mark van der Wilk , James Hensman , Carl Edward Rasmussen

With the advance of modern technology, more and more data are being recorded continuously during a time interval or intermittently at several discrete time points. They are both examples of "functional data", which have become a prevailing…

Methodology · Statistics 2015-07-21 Jane-Ling Wang , Jeng-Min Chiou , Hans-Georg Mueller

Uncertainties are abundant in complex systems. Mathematical models for these systems thus contain random effects or noises. The models are often in the form of stochastic differential equations, with some parameters to be determined by…

Numerical Analysis · Mathematics 2015-03-13 Jiarui Yang , Jinqiao Duan

We provide a simple method to estimate the parameters of multivariate stochastic volatility models with latent factor structures. These models are very useful as they alleviate the standard curse of dimensionality, allowing the number of…

Econometrics · Economics 2023-02-15 Giorgio Calzolari , Roxana Halbleib , Christian Mücher

Standard quantitative models of the stock market predict a log-normal distribution for stock returns (Bachelier 1900, Osborne 1959), but it is recognised (Fama 1965) that empirical data, in comparison with a Gaussian, exhibit leptokurtosis…

Computational Engineering, Finance, and Science · Computer Science 2007-05-23 Gilles Daniel

In dilute turbulent particle-laden flows, such as atmospheric dispersion of pollutants or virus particles, the dynamics of tracer-like to low inertial particles are significantly altered by the fluctuating motion of the carrier fluid phase.…

Fluid Dynamics · Physics 2024-06-19 Josh Williams , Uwe Wolfram , Ali Ozel

Large deviation functions contain information on the stability and response of systems driven into nonequilibrium steady states, and in such a way are similar to free energies for systems at equilibrium. As with equilibrium free energies,…

Statistical Mechanics · Physics 2018-04-25 Ushnish Ray , Garnet Kin-Lic Chan , David T. Limmer

Variational inference is a general approach for approximating complex density functions, such as those arising in latent variable models, popular in machine learning. It has been applied to approximate the maximum likelihood estimator and…

Methodology · Statistics 2018-04-19 Yen-Chi Chen , Y. Samuel Wang , Elena A. Erosheva

We discuss the issue of estimating large-scale vector autoregressive (VAR) models with stochastic volatility in real-time situations where data are sampled at different frequencies. In the case of a large VAR with stochastic volatility, the…

Econometrics · Economics 2019-12-06 Sebastian Ankargren , Paulina Jonéus

We propose a functional stochastic block model whose vertices involve functional data information. This new model extends the classic stochastic block model with vector-valued nodal information, and finds applications in real-world networks…

Methodology · Statistics 2024-07-02 Zuofeng Shang , Peijun Sang , Yang Feng , Chong Jin

A broad class of stochastic volatility models are defined by systems of stochastic differential equations. While these models have seen widespread success in domains such as finance and statistical climatology, they typically lack an…

Machine Learning · Computer Science 2022-07-15 Gregory Benton , Wesley J. Maddox , Andrew Gordon Wilson