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In this paper I develop a new computational method for pricing path dependent options. Using the path integral representation of the option price, I show that in general it is possible to perform analytically a partial averaging over the…

Statistical Mechanics · Physics 2016-08-31 Andrew Matacz

In parallel with advances in microscale imaging techniques, the fields of biology and materials science have focused on precisely extracting particle properties based on their diffusion behavior. Although the majority of real-world…

Mesoscale and Nanoscale Physics · Physics 2024-05-22 Kaito Takanami , Daisuke Taniguchi , Sawako Enoki , Masafumi Kuroda , Yasushi Okada , Yoshiyuki Kabashima

We present a method to infer the arbitrary space-dependent drift and diffusion of a nonlinear stochastic model driven by multiplicative fractional Gaussian noise from a single trajectory. Our method, fractional Onsager-Machlup optimisation…

Adaptation and Self-Organizing Systems · Physics 2023-11-07 Johannes A. Kassel , Benjamin Walter , Holger Kantz

We consider a diffusion process under a local weak H\"{o}rmander condition on the coefficients. We find Gaussian estimates for the density in short time and exponential lower and upper bounds for the probability that the diffusion remains…

Probability · Mathematics 2016-10-12 Paolo Pigato

A new approach for functional data description is proposed in this paper. It consists of a regression model with a discrete hidden logistic process which is adapted for modeling curves with abrupt or smooth regime changes. The model…

Methodology · Statistics 2013-12-30 Faicel Chamroukhi , Allou Samé , Gérard Govaert , Patrice Aknin

In this paper we present a novel approach towards variance reduction for discretised diffusion processes. The proposed approach involves specially constructed control variates and allows for a significant reduction in the variance for the…

Probability · Mathematics 2017-09-19 Denis Belomestny , Stefan Häfner , Tigran Nagapetyan , Mikhail Urusov

In this paper, we present a theoretical and computational workflow for the non-parametric Bayesian inference of drift and diffusion functions of autonomous diffusion processes. We base the inference on the partial differential equations…

Computational Engineering, Finance, and Science · Computer Science 2024-11-05 Maximilian Kruse , Sebastian Krumscheid

Considering a real-valued diffusion, a real-valued reward function and a positive discount rate, we provide an algorithm to solve the optimal stopping problem consisting in finding the optimal expected discounted reward and the optimal…

Probability · Mathematics 2019-09-24 Fabián Crocce , Ernesto Mordecki

Particle-based variational inference offers a flexible way of approximating complex posterior distributions with a set of particles. In this paper we introduce a new particle-based variational inference method based on the theory of…

Machine Learning · Statistics 2019-05-16 Luca Ambrogioni , Umut Guclu , Marcel van Gerven

The most common way to sample from a probability distribution is to use Monte-Carlo methods. For distributions on a continuous state space, one can find diffusions with the target distribution as equilibrium measure, so that the state of…

Probability · Mathematics 2015-10-28 Chii-Ruey Hwang , Raoul Normand , Sheng-Jhih Wu

Score-based diffusion models synthesize samples by reversing a stochastic process that diffuses data to noise, and are trained by minimizing a weighted combination of score matching losses. The log-likelihood of score-based diffusion models…

Machine Learning · Statistics 2021-10-22 Yang Song , Conor Durkan , Iain Murray , Stefano Ermon

The trajectories of diffusion processes are continuous but non-differentiable, and each occurs with vanishing probability. This introduces a gap between theory, where path probabilities are used in many contexts, and experiment, where only…

Statistical Mechanics · Physics 2020-07-01 Julian Kappler , Ronojoy Adhikari

A particle entering a scattering and absorbing medium executes a random walk through a sequence of scattering events. The particle ultimately achieves first-passage, leaving the medium or it is absorbed. The Kubelka-Munk model describes a…

Statistical Mechanics · Physics 2026-03-12 Claude Zeller , Robert Cordery

We study a diffusion approximation for a model of stochastic motion of a particle in one spatial dimension. The velocity of the particle is constant but the direction of the motion undergoes random changes with a Poisson clock. Moreover,…

Functional Analysis · Mathematics 2022-04-21 Adam Bobrowski , Tomasz Komorowski

We study the Bayesian problems of detecting a change in the drift rate of an observable diffusion process with linear and exponential penalty costs for a detection delay. The optimal times of alarms are found as the first times at which the…

Statistics Theory · Mathematics 2011-11-08 Pavel V. Gapeev , Albert N. Shiryaev

One of the most fascinating phenomena observed in reaction-diffusion systems is the emergence of segregated solutions, i.e. population densities with disjoint supports. We analyse such a reaction cross-diffusion system. In order to prove…

Analysis of PDEs · Mathematics 2017-11-16 José A. Carrillo , Simone Fagioli , Filippo Santambrogio , Markus Schmidtchen

We address the multiclass classification problem for stochastic diffusion paths, assuming that the classes are distinguished by their drift functions, while the diffusion coefficient remains common across all classes. In this setting, we…

Machine Learning · Statistics 2025-03-19 Christophe Denis , Eddy Ella Mintsa

We introduce a path sampling method for the computation of rate constants for systems with a highly diffusive character. Based on the recently developed algorithm of transition interface sampling (TIS) this procedure increases the…

Statistical Mechanics · Physics 2009-11-10 Daniele Moroni , Peter G. Bolhuis , Titus S. van Erp

A one dimensional diffusion process $X=\{X_t, 0\leq t \leq T\}$, with drift $b(x)$ and diffusion coefficient $\sigma(\theta, x)=\sqrt{\theta} \sigma(x)$ known up to $\theta>0$, is supposed to switch volatility regime at some point $t^*\in…

Statistics Theory · Mathematics 2007-09-20 A. De Gregorio , S. M. Iacus

This work proposes diffusion normalized least mean M-estimate algorithm based on the modified Huber function, which can equip distributed networks with robust learning capability in the presence of impulsive interference. In order to…

Machine Learning · Computer Science 2020-04-21 Y. Yu , H. He , T. Yang , X. Wang , R. C. de Lamare
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