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We introduce a new approach for designing numerical schemes for stochastic differential equations (SDEs). The approach, which we have called direction and norm decomposition method, proposes to approximate the required solution $X_t$ by…

Numerical Analysis · Mathematics 2017-02-21 C. M. Mora , H. A. Mardones , J. C. Jimenez , M. Selva , R. Biscay

In this paper we propose a numerical scheme for the class of backward doubly stochastic (BDSDEs) with possible path-dependent terminal values. We prove that our scheme converge in the strong $L^2$-sense and derive its rate of convergence.…

Probability · Mathematics 2011-08-04 Auguste Aman

These notes constitute the basis for the lectures given by the author at Centre de recherches math\'ematiques (CRM) at Universit\'e de Montreal, as part of the thematic semester on "Mathematical challenges in many-body physics and quantum…

Probability · Mathematics 2018-12-10 Raluca M. Balan

Neural Stochastic Differential Equations (Neural SDEs) provide a principled framework for modeling continuous-time stochastic processes and have been widely adopted in fields ranging from physics to finance. Recent advances suggest that…

Machine Learning · Computer Science 2026-03-17 Yuanjian Xu , Yuan Shuai , Jianing Hao , Guang Zhang

We study stochastic differential equations (SDEs) whose drift and diffusion coefficients are path-dependent and controlled. We construct a value process on the canonical path space, considered simultaneously under a family of singular…

Probability · Mathematics 2012-05-08 Marcel Nutz

We study a kind of better recurrence than Kolmogorov's one: periodicity recurrence,which corresponds periodic solutions in distribution for stochastic differential equations. On the basis of technique of upper and lower solutions and…

Dynamical Systems · Mathematics 2019-11-13 Chunyan Ji , Xue Yang , Yong Li

This paper considers method of creation of an advisor and indicator based on the spectral stochastic analysis model, both with linear and non-linear approximation. The problem of entrance to one or another trade position is solved on the…

Portfolio Management · Quantitative Finance 2014-06-19 A. M. Avdeenko

We study mean field stochastic differential equations with a diffusion coefficient that depends on the distribution function of the unknown process in a discontinuous manner, which is a type of distribution dependent regime switching. To…

Probability · Mathematics 2025-03-28 Jani Nykänen

We are interested in the numerical approximation of non-linear stochastic differential equations (SDEs) with solution in a certain domain. Our goal is to construct explicit numerical schemes that preserve that structure. We generalize the…

Numerical Analysis · Mathematics 2017-06-28 Ioannis S. Stamatiou

We present a method for learning latent stochastic differential equations (SDEs) from high-dimensional time series data. Given a high-dimensional time series generated from a lower dimensional latent unknown It\^o process, the proposed…

Machine Learning · Statistics 2021-11-30 Ali Hasan , João M. Pereira , Sina Farsiu , Vahid Tarokh

Probabilistic ordinary differential equation (ODE) solvers have been introduced over the past decade as uncertainty-aware numerical integrators. They typically proceed by assuming a functional prior to the ODE solution, which is then…

Numerical Analysis · Mathematics 2025-03-25 Yvann Le Fay , Simo Särkkä , Adrien Corenflos

The purpose of this paper is to analyze solutions of a non-local nonlinear partial integro-differential equation (PIDE) in multidimensional spaces. Such class of PIDE often arises in financial modeling. We employ the theory of abstract…

Mathematical Finance · Quantitative Finance 2021-06-22 Daniel Sevcovic , Cyril Izuchukwu Udeani

The goal of this paper is to clarify when the solutions to stochastic partial differential equations stay close to a given subset of the state space for starting points which are close as well. This includes results for deterministic…

Probability · Mathematics 2024-10-10 Toshiyuki Nakayama , Stefan Tappe

In this article we present a new approach to the numerical valuation of derivative securities. The method is based on our previous work where we formulated the theory of pricing in terms of tradables. The basic idea is to fit a finite…

Statistical Mechanics · Physics 2025-12-30 Jiri Hoogland , Dimitri Neumann

This paper presents a new asymptotic expansion method for pricing continuously monitoring barrier options. In particular, we develops a semi-group expansion scheme for the Cauchy-Dirichlet problem in the second-order parabolic partial…

Computational Finance · Quantitative Finance 2014-10-03 Takashi Kato , Akihiko Takahashi , Toshihiro Yamada

We present a framework and algorithms to learn controlled dynamics models using neural stochastic differential equations (SDEs) -- SDEs whose drift and diffusion terms are both parametrized by neural networks. We construct the drift term to…

Machine Learning · Computer Science 2023-10-17 Franck Djeumou , Cyrus Neary , Ufuk Topcu

Stochastic Differential Equations (SDEs) in high dimension, having the structure of finite dimensional approximation of Stochastic Partial Differential Equations (SPDEs), are considered. The aim is to compute numerically expected values and…

Probability · Mathematics 2024-04-25 Franco Flandoli , Dejun Luo , Cristiano Ricci

We present a method for approximating solutions of Stochastic Differential Equations (SDEs) with arbitrary rates. This approximation is derived for bounded and measurable test functions. Specifically, we demonstrate that, leveraging the…

Probability · Mathematics 2024-03-27 Clément Rey

The work relates to a new way for analysis of one-dimensional stochastic systems, based on consideration of its higher order difference structure. From this point of view, the deterministic and random processes are analyzed. A new numerical…

Chaotic Dynamics · Physics 2016-09-08 A. Yu. Shahverdian , A. V. Apkarian

The goal of these notes is to provide an introduction to rough partial differential equations. For this purpose, we will present the theory of rough paths to the extend as it is required. Applications to stochastic partial differential…

Probability · Mathematics 2026-05-12 Stefan Tappe