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A new concept, called balanced estimator of diffusion entropy, is proposed to detect scalings in short time series. The effectiveness of the method is verified by means of a large number of artificial fractional Brownian motions. It is used…

Statistical Finance · Quantitative Finance 2012-11-15 Jingzhao Qi , Huijie Yang

We study the functional link between the Hurst parameter and the Normalized Total Wavelet Entropy when analyzing fractional Brownian motion (fBm) time series--these series are synthetically generated. Both quantifiers are mainly used to…

Data Analysis, Statistics and Probability · Physics 2009-11-11 Dario G. Perez , Luciano Zunino , Mario Garavaglia , Osvaldo A. Rosso

Fractional Brownian motion (fBm) has been used as a theoretical framework to study real time series appearing in diverse scientific fields. Because its intrinsic non-stationarity and long range dependence, its characterization via the Hurst…

Data Analysis, Statistics and Probability · Physics 2015-05-13 Lucas Lacasa , Bartolo Luque , Jordi Luque , Juan Carlos Nuno

A class of Gaussian processes generalizing the usual fractional Brownian motion for Hurst indices in (1/2,1) and multifractal Brownian motion introduced in Ralchenko and Shevchenko (Theory Probab Math Stat 80, 2010) and Boufoussi et al.…

Probability · Mathematics 2013-07-08 Jelena Ryvkina

We implement Bayesian model selection and parameter estimation for the case of fractional Brownian motion with measurement noise and a constant drift. The approach is tested on artificial trajectories and shown to make estimates that match…

Data Analysis, Statistics and Probability · Physics 2018-04-05 Jens Krog , Lars H. Jacobsen , Frederik W. Lund , Daniel Wüstner , Michael A. Lomholt

We study well-posedness of sweeping processes with stochastic perturbations generated by a fractional Brownian motion and convergence of associated numerical schemes. To this end, we first prove new existence, uniqueness and approximation…

Classical Analysis and ODEs · Mathematics 2015-05-07 Adrian Falkowski , Leszek Slominski

This article introduces a novel construction of the two-dimensional fractional Brownian motion (2D fBm) with dependent components. Unlike similar models discussed in the literature, our approach uniquely accommodates the full range of model…

We introduce a bootstrap procedure for high-frequency statistics of Brownian semistationary processes. More specifically, we focus on a hypothesis test on the roughness of sample paths of Brownian semistationary processes, which uses an…

Statistics Theory · Mathematics 2021-01-06 Mikkel Bennedsen , Ulrich Hounyo , Asger Lunde , Mikko S. Pakkanen

In this work we introduce correlated random walks on $\Z$. When picking suitably at random the coefficient of correlation, and taking the average over a large number of walks, we obtain a discrete Gaussian process, whose scaling limit is…

Probability · Mathematics 2007-05-23 Enriquez Nathanael

This paper presents a new estimator of the global regularity index of a multifractional Brownian motion. Our estimation method is based upon a ratio statistic, which compares the realized global quadratic variation of a multifractional…

Probability · Mathematics 2016-07-11 Joachim Lebovits , Mark Podolskij

We empirically analyze the scaling properties of daily Foreign Exchange rates, Stock Market indices and Bond futures across different financial markets. We study the scaling behaviour of the time series by using a generalized Hurst exponent…

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

We consider the problem of estimating the roughness of the volatility process in a stochastic volatility model that arises as a nonlinear function of fractional Brownian motion with drift. To this end, we introduce a new estimator that…

Statistical Finance · Quantitative Finance 2026-04-17 Xiyue Han , Alexander Schied

Fractional Brownian motion is a self-affine, non-Markovian and translationally invariant generalization of Brownian motion, depending on the Hurst exponent $H$. Here we investigate fractional Brownian motion where both the starting and the…

Statistical Mechanics · Physics 2016-11-09 Mathieu Delorme , Kay Jörg Wiese

The fractional Brownian motion can be considered as a Gaussian field indexed by $(t,H)\in {\mathbb{R}_{+}\times (0,1)}$, where $H$ is the Hurst parameter. On compact time intervals, it is known to be almost surely jointly H\"older…

Probability · Mathematics 2025-02-06 El Mehdi Haress , Alexandre Richard

In this short note, we show how to use concentration inequalities in order to build exact confidence intervals for the Hurst parameter associated with a one-dimensional fractional Brownian motion

Probability · Mathematics 2009-01-29 Jean-Christophe Breton , Ivan Nourdin , Giovanni Peccati

We consider the problem of efficient estimation for the drift of fractional Brownian motion $B^H:=(B^H_t)_{t\in[0,T]}$ with hurst parameter $H$ less than 1/2. We also construct superefficient James-Stein type estimators which dominate,…

Probability · Mathematics 2009-05-12 Es-Sebaiy Khalifa , Idir Ouassou , Youssef Ouknine

We propose a new algorithm to generate a fractional Brownian motion, with a given Hurst parameter, 1/2<H<1 using the correlated Bernoulli random variables with parameter p; having a certain density. This density is constructed using the…

Computation · Statistics 2019-05-15 Buket Coskun , Ceren Vardar-Acar , Hakan Demirtas

This work focuses on moderate deviations for two-time scale systems with mixed fractional Brownian motion. Our proof uses the weak convergence method which is based on the variational representation formula for mixed fractional Brownian…

Dynamical Systems · Mathematics 2024-03-13 Xiaoyu Yang , Yuzuru Inahama , Yong Xu

Many real time-series exhibit behavior adequate to long range dependent data. Additionally very often these time-series have constant time periods and also have characteristics similar to Gaussian processes although they are not Gaussian.…

Data Analysis, Statistics and Probability · Physics 2017-01-04 A. Kumar , A. Wyłomańska , R. Połoczański , S. Sundar

Diffusion processes driven by Fractional Brownian motion (FBM) have often been considered in modeling stock price dynamics in order to capture the long range dependence of stock price observed in reality. Option prices for such models had…

Statistics Theory · Mathematics 2024-05-29 Ananya Lahiri , Rituparna Sen