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We derive a generalised It\=o formula for stochastic processes which are constructed by a convolution of a deterministic kernel with a centred L\'evy process. This formula has a unifying character in the sense that it contains the classical…

Probability · Mathematics 2015-03-03 Christian Bender , Robert Knobloch , Philip Oberacker

We give two novel proofs that the path integral and stochastic quantizations of generic scalar Euclidean quantum field theories are equivalent. Our proofs rely on Taylor interpolations indexed by forests, in the fashion of constructive…

Mathematical Physics · Physics 2026-04-09 Dario Benedetti , Ilya Chevyrev , Razvan Gurau

In this paper we study the relationship between functional forward-backward stochastic systems and path-dependent PDEs. In the framework of functional It\^o calculus, we introduce a path-dependent PDE and prove that its solution is uniquely…

Probability · Mathematics 2012-04-18 Shaolin Ji , Shuzhen Yang

We introduce a model for the short-term dynamics of financial assets based on an application to finance of quantum gauge theory, developing ideas of Ilinski. We present a numerical algorithm for the computation of the probability…

Computational Finance · Quantitative Finance 2018-08-01 Giovanni Paolinelli , Gianni Arioli

The Malliavin integration-by-parts formula is a key ingredient to develop stochastic analysis on the Wiener space. In this article we show that a suitable integration-by-parts formula also characterizes a wide class of Gaussian processes,…

Probability · Mathematics 2019-04-08 Ehsan Azmoodeh , Tommi Sottinen , Ciprian A. Tudor , Lauri Viitasaari

Rough paths techniques give the ability to define solutions of stochastic differential equations driven by signals $X$ which are not semimartingales and whose $p$-variation is finite only for large values of $p$. In this context, rough…

Probability · Mathematics 2020-05-15 Yanghui Liu , Zachary Selk , Samy Tindel

For a class of piecewise deterministic Markov processes we introduce a stochastic calculus which is a certain non-Gaussian counterpart to the classical Malliavin calculus. As an application we investigate the regularity of densities of…

Probability · Mathematics 2023-06-21 Jörg-Uwe Löbus

It is shown that under a certain condition on a semimartingale and a time-change, any stochastic integral driven by the time-changed semimartingale is a time-changed stochastic integral driven by the original semimartingale. As a direct…

Probability · Mathematics 2010-10-26 Kei Kobayashi

A peculiar feature of It\^o's calculus is that it is an integral calculus that gives no explicit derivative with a systematic differentiation theory counterpart, as in elementary calculus. So, can we define a pathwise stochastic derivative…

Probability · Mathematics 2010-05-25 Hassan Allouba

By using path integrals, the stochastic process associated to the time evolution of the quantum probability density is formally rewritten in terms of a stochastic differential equation, given by Newton's equation of motion with an…

Quantum Physics · Physics 2018-01-04 Marco Patriarca

Nakao's stochastic integrals for continuous additive functionals of zero energy are extended from the symmetric Dirichlet forms setting to the non-symmetric Dirichlet forms setting. Ito's formula in terms of the extended stochastic…

Probability · Mathematics 2015-06-03 Chuan-Zhong Chen , Li Ma , Wei Sun

In this paper, a class of non-Markovian forward-backward doubly stochastic systems is studied. By using the technique of functional It\^o (or path-dependent) calculus, the relationship between the systems and related path-dependent…

Probability · Mathematics 2022-06-14 Yufeng Shi , Jiaqiang Wen , Jie Xiong

Variational integrators are derived for structure-preserving simulation of stochastic forced Hamiltonian systems. The derivation is based on a stochastic discrete Hamiltonian which approximates a type-II stochastic generating function for…

Numerical Analysis · Mathematics 2020-02-07 Michael Kraus , Tomasz M. Tyranowski

In this paper, we consider the composition of two independent processes : one process corresponds to position and the other one to time. Such processes will be called iterated processes. We first propose an algorithm based on the Euler…

Probability · Mathematics 2017-05-03 Michèle Thieullen , Alexis Vigot

The essentials of fractional calculus according to different approaches that can be useful for our applications in the theory of probability and stochastic processes are established. In addition to this, from this fractional integral one…

Mathematical Physics · Physics 2013-07-31 Nicy Sebastian

In this paper we introduce a stochastic integral with respect to the solution X of the fractional heat equation on [0,1], interpreted as a divergence operator. This allows to use the techniques of the Malliavin calculus in order to…

Probability · Mathematics 2007-06-13 Jorge A. Leon , Samy Tindel

We consider a Markov process $X$ associated to a nonnecessarily symmetric Dirichlet form $\mathcal{E}$. We define a stochastic integral with respect to a class of additive functionals of zero quadratic variation and then we obtain an…

Probability · Mathematics 2013-12-18 Alexander Walsh

This paper is complete proof of one method for obtaining the generalized Ito-Wentzell formula, its basic idea was announced earlier in a pre-print (arXiv:1309.3038v1). This proof sets the approach which uses the Ito formula and the…

Probability · Mathematics 2013-09-16 Elena V. Karachanskaya

A summary of the relationship between the Langevin equation, Fokker-Planck-Kolmogorov forward equation (FPKfe) and the Feynman path integral descriptions of stochastic processes relevant for the solution of the continuous-discrete filtering…

Data Analysis, Statistics and Probability · Physics 2015-05-13 Bhashyam Balaji

Using the theory of stochastic integration for processes with values in a UMD Banach space developed recently by the authors, an Ito formula is proved which is applied to prove the existence of strong solutions for a class of stochastic…

Probability · Mathematics 2008-04-03 Z. Brzezniak , J. M. A. M. van Neerven , M. C. Veraar , L. Weis
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