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In this paper we give general criteria on tightness and weak convergence of discrete Markov chains to symmetric jump processes on metric measure spaces under mild conditions. As an application, we investigate discrete approximation for a…

Probability · Mathematics 2010-09-01 Zhen-Qing Chen , Panki Kim , Takashi Kumagai

This paper is concerned with tests for changes in the jump behaviour of a time-continuous process. Based on results on weak convergence of a sequential empirical tail integral process, asymptotics of certain tests statistics for breaks in…

Methodology · Statistics 2014-12-18 Axel Bücher , Michael Hoffmann , Mathias Vetter , Holger Dette

We propose threshold diffusion processes as unique solutions to stochastic differential equations with step-function coefficients, and obtain explicit expressions for the conditional Laplace transform of the hitting times and the potential…

Probability · Mathematics 2025-08-26 Lina Ji , Chuyang Li , Xiaowen Zhou

In this paper we consider two semimartingales driven by diffusions and jumps. We allow both for finite activity and for infinite activity jump components. Given discrete observations we disentangle the {\it integrated covariation} (the…

Probability · Mathematics 2008-12-10 Fabio Gobbi , Cecilia Mancini

We investigate the predictability of extreme events in time series. The focus of this work is to understand under which circumstances large events are better predictable than smaller events. Therefore we use a simple prediction algorithm…

Data Analysis, Statistics and Probability · Physics 2008-01-30 S. Hallerberg , H. Kantz

The paper considers a continuous-time birth-death process where the jump rate has an asymptotically polynomial dependence on the process position. We obtain a rough exponential asymptotics for the probability of excursions of a re-scaled…

Probability · Mathematics 2018-06-26 N. D. Vvedenskaya , A. V. Logachov , Y. M. Suhov , A. A. Yambartsev

We consider a controlled second order differential equation which is partially observed with an additional fractional noise. we study the asymptotic (for large observation time) design problem of the input and give an efficient estimator of…

Probability · Mathematics 2019-04-09 Chunhao Cai , Wujun LV

This paper delves into a nonparametric estimation approach for the interaction function within diffusion-type particle system models. We introduce two estimation methods based upon an empirical risk minimization. Our study encompasses an…

Statistics Theory · Mathematics 2024-02-23 Denis Belomestny , Mark Podolskij , Shi-Yuan Zhou

This paper introduces a framework for simulating finite dimensional representations of (jump) diffusion sample paths over finite intervals, without discretisation error (exactly), in such a way that the sample path can be restored at any…

Methodology · Statistics 2016-02-10 Murray Pollock , Adam M. Johansen , Gareth O. Roberts

We consider a diffusion risk model where proportional reinsurance can be bought. In order to stabilise the surplus process, one tries to keep the drawdown, that is the difference of the surplus to its historical maximum, in an interval…

Optimization and Control · Mathematics 2025-04-07 Kira Dudziak , Hanspeter Schmidli

We present a general framework for Bayesian estimation of incompletely observed multivariate diffusion processes. Observations are assumed to be discrete in time, noisy and incomplete. We assume the drift and diffusion coefficient depend on…

Methodology · Statistics 2019-02-04 Frank van der Meulen , Moritz Schauer

We set up a structural model to study credit risk for a portfolio containing several or many credit contracts. The model is based on a jump--diffusion process for the risk factors, i.e. for the company assets. We also include correlations…

Risk Management · Quantitative Finance 2008-12-02 Rudi Schäfer , Markus Sjölin , Andreas Sundin , Michal Wolanski , Thomas Guhr

In this paper we study the properties of the Lasso estimator of the drift component in the diffusion setting. More specifically, we consider a multivariate parametric diffusion model $X$ observed continuously over the interval $[0,T]$ and…

Statistics Theory · Mathematics 2023-03-29 Gabriela Ciolek , Dmytro Marushkevych , Mark Podolskij

We study nonparametric density estimation in non-stationary drift settings. Given a sequence of independent samples taken from a distribution that gradually changes in time, the goal is to compute the best estimate for the current…

Machine Learning · Computer Science 2023-10-31 Alessio Mazzetto , Eli Upfal

We consider a jump-diffusion process on a bounded domain with reflection at the boundary, and establish long-term results for a general additive process of its path. This includes the long-term behaviour of its occupation time in the…

Probability · Mathematics 2022-07-29 Lea Popovic , Giovanni Zoroddu

Procyclicality of historical risk measure estimation means that one tends to over-estimate future risk when present realized volatility is high and vice versa under-estimate future risk when the realized volatility is low. Out of it…

Risk Management · Quantitative Finance 2020-01-03 Marcel Bräutigam , Marie Kratz

In this paper a new dissimilarity measure to identify groups of assets dynamics is proposed. The underlying generating process is assumed to be a diffusion process solution of stochastic differential equations and observed at discrete time.…

Statistical Finance · Quantitative Finance 2008-12-02 Alessandro De Gregorio , Stefano Maria Iacus

In this work, a fully nonparametric geostatistical approach to estimate threshold exceeding probabilities is proposed. To estimate the large-scale variability (spatial trend) of the process, the nonparametric local linear regression…

We have random number of independent diffusion processes with absorption on boundaries in some region at initial time $t=0$. The initial numbers and positions of processes in region is defined by Poisson random measure. It is required to…

Probability · Mathematics 2016-09-07 Aniello Fedullo , Vitalii A. Gasanenko

A Monte Carlo method for simulating a multi-dimensional diffusion process conditioned on hitting a fixed point at a fixed future time is developed. Proposals for such diffusion bridges are obtained by superimposing an additional guiding…

Probability · Mathematics 2017-05-30 Moritz Schauer , Frank van der Meulen , Harry van Zanten
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