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We propose a model for the dynamics of a limit order book in a liquid market where buy and sell orders are submitted at high frequency. We derive a functional central limit theorem for the joint dynamics of the bid and ask queues and show…

Trading and Market Microstructure · Quantitative Finance 2012-03-01 Rama Cont , Adrien De Larrard

In this paper, a general framework is developed for continuous-time financial market models defined from simple strategies through conditional topologies that avoid stochastic calculus and do not necessitate semimartingale models. We then…

Pricing of Securities · Quantitative Finance 2024-05-14 Dorsaf Cherif , Emmanuel Lepinette

Recent innovations in diffusion probabilistic models have paved the way for significant progress in image, text and audio generation, leading to their applications in generative time series forecasting. However, leveraging such abilities to…

Machine Learning · Computer Science 2025-11-07 Yuansan Liu , Sudanthi Wijewickrema , Dongting Hu , Christofer Bester , Stephen O'Leary , James Bailey

Modern applications have made ubiquitous high-dimensional data, especially time-dependent data, with more and more complicated structures, and it also has become more frequent to encounter the scenario of hierarchical relationships among…

Methodology · Statistics 2026-04-06 Lan Li , Shibo Yu , Yingzhou Wang , Guodong Li

A joint conditional autoregressive expectile and Expected Shortfall framework is proposed. The framework is extended through incorporating a measurement equation which models the contemporaneous dependence between the realized measures and…

Risk Management · Quantitative Finance 2019-06-25 Chao Wang , Richard Gerlach

High-frequency trading requires fast data processing without information lags for precise stock price forecasting. This high-paced stock price forecasting is usually based on vectors that need to be treated as sequential and…

Machine Learning · Computer Science 2023-05-16 Adamantios Ntakaris , Moncef Gabbouj , Juho Kanniainen

Neural marked temporal point processes have been a valuable addition to the existing toolbox of statistical parametric models for continuous-time event data. These models are useful for sequences where each event is associated with a single…

Machine Learning · Computer Science 2024-03-20 Yuxin Chang , Alex Boyd , Padhraic Smyth

Various and ubiquitous information systems are being used in monitoring, exchanging, and collecting information. These systems are generating massive amount of event sequence logs that may help us understand underlying phenomenon. By…

Machine Learning · Statistics 2018-07-13 Yihuang Kang , Vladimir Zadorozhny

Having a regression model, we are interested in finding two-sided intervals that are guaranteed to contain at least a desired proportion of the conditional distribution of the response variable given a specific combination of predictors. We…

Machine Learning · Computer Science 2016-03-22 Mohammad Ghasemi Hamed , Mathieu Serrurier , Nicolas Durand

This paper focuses on some simple models of limit order book dynamics which simulate market trading mechanisms. We start with a discrete time/space Markov process and then perform a re-scaling procedure leading to a deterministic dynamical…

Probability · Mathematics 2011-02-08 N Vvedenskaya , Y Suhov , V Belitsky

To scale non-parametric extensions of probabilistic topic models such as Latent Dirichlet allocation to larger data sets, practitioners rely increasingly on parallel and distributed systems. In this work, we study data-parallel training for…

Machine Learning · Statistics 2020-10-07 Alexander Terenin , Måns Magnusson , Leif Jonsson

Nonparametric methods have been very popular in the last couple of decades in time series and regression, but no such development has taken place for spatial models. A rather obvious reason for this is the curse of dimensionality. For…

Statistics Theory · Mathematics 2007-06-13 Jiti Gao , Zudi Lu , Dag Tjøstheim

Structural Causal Models (SCMs) offer a principled framework to reason about interventions and support out-of-distribution generalization, which are key goals in scientific discovery. However, the task of learning SCMs from observed data…

Machine Learning · Computer Science 2026-04-06 Divyat Mahajan , Jannes Gladrow , Agrin Hilmkil , Cheng Zhang , Meyer Scetbon

Model averaging has demonstrated superior performance for ensemble forecasting in high-dimensional framework, its extension to incomplete datasets remains a critical but underexplored challenge. Moreover, identifying the parsimonious model…

Methodology · Statistics 2025-09-03 Wei Xiong , Dianliang Deng , Dehui Wang

Models for cross-sectional network data have become increasingly well-developed in recent decades, and are widely used. This has led to a growing interest in the connection between such cross-sectional models and the behavioral processes…

Social and Information Networks · Computer Science 2026-05-05 Carter T. Butts , Alexander Murray-Watters

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

In this article, we propose a penalized high dimensional semiparametric model average quantile prediction approach that is robust for forecasting the conditional quantile of the response. We consider a two-step estimation procedure. In the…

Statistics Theory · Mathematics 2018-09-06 Jingwen Tu , Hu Yang , Chaohui Guo

Distribution shift over time occurs in many settings. Leveraging historical data is necessary to learn a model for the last time point when limited data is available in the final period, yet few methods have been developed specifically for…

Machine Learning · Computer Science 2024-07-16 Christina X Ji , Ahmed M Alaa , David Sontag

This paper presents a pre-processing and a distance which improve the performance of machine learning algorithms working on independent and identically distributed stochastic processes. We introduce a novel non-parametric approach to…

Machine Learning · Computer Science 2015-09-04 Gautier Marti , Philippe Very , Philippe Donnat

We propose a novel conditional diffusion model for contextual portfolio optimization that learns the cross-sectional distribution of next-day stock returns conditioned on high-dimensional asset-specific factors. Our model leverages a…

Portfolio Management · Quantitative Finance 2026-04-17 Xuefeng Gao , Mengying He , Xuedong He
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