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We apply a recently developed wavelet based approach to characterize the correlation and scaling properties of non-stationary financial time series. This approach is local in nature and it makes use of wavelets from the Daubechies family…

Chaotic Dynamics · Physics 2008-12-02 P. Manimaran , Prasanta K. Panigrahi , Jitendra. C. Parikh

Oil price data have a complicated multi-scale structure that may vary with time. We use time-frequency analysis to identify the main features of these variations and, in particular, the regime shifts. The analysis is based on a…

Statistical Finance · Quantitative Finance 2019-05-01 Josselin Garnier , Knut Solna

We examine volatility of an Indian stock market in terms of aspects like participation, synchronization of stocks and quantification of volatility using the random matrix approach. Volatility pattern of the market is found using the BSE…

Physics and Society · Physics 2008-12-02 V. Kulkarni , N. Deo

We introduce the notion of relative volatility/intermittency and demonstrate how relative volatility statistics can be used to estimate consistently the temporal variation of volatility/intermittency when the data of interest are generated…

Statistics Theory · Mathematics 2015-09-16 Ole E. Barndorff-Nielsen , Mikko S. Pakkanen , Jürgen Schmiegel

The scaling properties encompass in a simple analysis many of the volatility characteristics of financial markets. That is why we use them to probe the different degree of markets development. We empirically study the scaling properties of…

Statistical Mechanics · Physics 2008-12-02 T. Di Matteo , T. Aste , M. M. Dacorogna

We present a study of the intermittent properties of a shell model of turbulence with unprecedented statistics, about $\sim 10^7$ eddy turn over time, achieved thanks to an implementation on a large-scale parallel GPU factory. This allows…

We study the large-time behaviour of Brownian particles moving through a viscous medium in a confined potential, and which are further subjected to position-dependent driving forces that are periodic in time. We focus on the case where…

Statistical Mechanics · Physics 2009-11-10 Sreedhar B. Dutta , Mustansir Barma

Diffusive transport in many complex systems features a crossover between anomalous diffusion at short times and normal diffusion at long times. This behavior can be mathematically modeled by cutting off (tempering) beyond a mesoscopic…

Statistical Mechanics · Physics 2021-10-15 Thomas Vojta , Zachary Miller , Samuel Halladay

Consider the fractional Brownian Motion (fBM) $B^H=\{B^H(t): t \in [0,1] \}$ with Hurst index $H\in (0,1)$. We construct a probability space supporting both $B^H$ and a fully simulatable process $\hat B_{\epsilon}^H $ such that $$\sup_{t\in…

Probability · Mathematics 2019-02-22 Yi Chen , Jing Dong , Hao Ni

We investigate the large-volatility dynamics in financial markets, based on the minute-to-minute and daily data of the Chinese Indices and German DAX. The dynamic relaxation both before and after large volatilities is characterized by a…

Statistical Finance · Quantitative Finance 2011-03-28 X. F. Jiang , B. Zheng , J. Shen

We consider an one-dimensional conservation law with random space-time forcing and calculate using large deviations the exponentially small probabilities of anomalous shock profile displacements. Under suitable hypotheses on the spatial…

Probability · Mathematics 2012-06-08 Josselin Garnier , George Papanicolaou , Tzu-Wei Yang

We develop an entropic framework to model the dynamics of stocks and European Options. Entropic inference is an inductive inference framework equipped with proper tools to handle situations where incomplete information is available. The…

Pricing of Securities · Quantitative Finance 2019-08-20 Mohammad Abedi , Daniel Bartolomeo

Single index financial market models cannot account for the empirically observed complex interactions between shares in a market. We describe a multi-share financial market model and compare characteristics of the volatility, that is the…

Condensed Matter · Physics 2009-10-31 Adam Ponzi

A major open problem in biophysics is to understand the highly heterogeneous transport of many structures inside living cells, such as endosomes. We find that mathematically it is described by spatio-temporal heterogeneous fractional…

Subcellular Processes · Quantitative Biology 2021-07-20 Nickolay Korabel , Daniel Han , Alessandro Taloni , Gianni Pagnini , Sergei Fedotov , Viki Allan , Thomas Andrew Waigh

In attempting to quantify statistically the density structure of the interstellar medium, astronomers have considered a variety of fractal models. Here we argue that, to properly characterise a fractal model, one needs to define precisely…

Astrophysics of Galaxies · Physics 2020-02-14 M. L. Bates , A. P. Whitworth , O. D. Lomax

Properties of mixed fractional Brownian motion has been discussed by Cheridito (2001) and Zili (2006). We have proposed an estimator of volatility parameter for a model driven by MFBM. In our article we have shown that the estimator has…

Statistics Theory · Mathematics 2017-06-29 Ananya Lahiri

Electron dynamics, financial markets and nuclear fission reactors, though seemingly unrelated, all produce observable characteristics evolving with time. Within this broad scope, departures from normal temporal behavior range from…

An empirical algorithm is used here to study the stochastic and multifractal nature of nonlinear time series. A parameter can be defined to quantitatively measure the deviation of the time series from a Wiener process so that the…

Statistical Finance · Quantitative Finance 2014-01-08 Chih-Hao Lin , Chia-Seng Chang , Sai-Ping Li

The state of a stochastic process evolving over a time $t$ is typically assumed to lie on a normal distribution whose width scales like $t^{1/2}$. However, processes where the probability distribution is not normal and the scaling exponent…

Statistical Finance · Quantitative Finance 2017-05-24 Lijian Chen , Kevin E. Bassler , Joseph L. McCauley , Gemunu H. Gunaratne

Anomalous diffusion is an established phenomenon but still a theoretical challenge in non-equilibrium statistical mechanics. Physical models are built incrementally, and the most recent and most general family is based on the fractional…

Probability · Mathematics 2025-07-23 Christian Bender , Yana A. Butko , Mirko D'Ovidio , Gianni Pagnini
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