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This paper presents a new prediction model for time series data by integrating a time-varying Geometric Brownian Motion model with a pricing mechanism used in financial engineering. Typical time series models such as Auto-Regressive…

Applications · Statistics 2020-01-01 Abdullah AlShelahi , Jingxing Wang , Mingdi You , Eunshin Byon , Romesh Saigal

The paper gives a new representation for the fractional Brownian motion that can be applied to simulate this self-similar random process in continuous time. Such a representation is based on the spectral form of mathematical description and…

Probability · Mathematics 2025-01-28 Konstantin A. Rybakov

We estimate the Hurst parameter $H$ of a fractional Brownian motion from discrete noisy data observed along a high frequency sampling scheme. The presence of systematic experimental noise makes recovery of $H$ more difficult since relevant…

Statistics Theory · Mathematics 2007-12-18 Arnaud Gloter , Marc Hoffmann

The fractional Brownian motion (fBm) is parameterized by the Hurst exponent $H\in(0,1)$, which determines the dependence structure and regularity of sample paths. Empirical findings suggest that the Hurst exponent may be non-constant in…

Statistics Theory · Mathematics 2025-11-14 Fabian Mies , Benedikt Wilkens

Financial markets have long since been modeled using stochastic methods such as Brownian motion, and more recently, rough volatility models have been built using fractional Brownian motion. This fractional aspect brings memory into the…

Statistical Finance · Quantitative Finance 2024-07-01 Patrick Geraghty

We survey some new progress on the pricing models driven by fractional Brownian motion \cb{or} mixed fractional Brownian motion. In particular, we give results on arbitrage opportunities, hedging, and option pricing in these models. We…

Pricing of Securities · Quantitative Finance 2010-04-20 Christian Bender , Tommi Sottinen , Esko Valkeila

The paper suggests a way of stochastic integration of random integrands with respect to fractional Brownian motion with the Hurst parameter H> 1/2. The integral is defined initially on the processes that are "piecewise" predictable on a…

Probability · Mathematics 2020-04-21 Nikolai Dokuchaev

As an extension of isotropic Gaussian random fields and Q-Wiener processes on d-dimensional spheres, isotropic Q-fractional Brownian motion is introduced and sample H\"older regularity in space-time is shown depending on the regularity of…

Probability · Mathematics 2025-05-23 Annika Lang , Björn Müller

We survey existing results concerning the study in small times of the density of the solution of a rough differential equation driven by fractional Brownian motions. We also slightly improve existing results and discuss some possible…

Probability · Mathematics 2014-03-05 Fabrice Baudoin , Cheng Ouyang

We introduce a class of Gaussian processes with stationary increments which exhibit long-range dependence. The class includes fractional Brownian motion with Hurst parameter H>1/2 as a typical example. We establish infinite and finite past…

Probability · Mathematics 2011-11-10 Akihiko Inoue , Vo Van Anh

We introduce the stochastic process of incremental multifractional Brownian motion (IMFBM), which locally behaves like fractional Brownian motion with a given local Hurst exponent and diffusivity. When these parameters change as function of…

Statistical Mechanics · Physics 2023-07-27 Jakub Slezak , Ralf Metzler

In this presentation, we introduce a new method for change point analysis on the Hurst index for a piecewise fractional Brownian motion. We first set the model and the statistical problem. The proposed method is a transposition of the FDpV…

Statistics Theory · Mathematics 2011-03-23 Mehdi Fhima , Arnaud Guillin , Pierre R. Bertrand

We present a Bayesian inference scheme for scaled Brownian motion, and investigate its performance on synthetic data for parameter estimation and model selection in a combined inference with fractional Brownian motion. We include the…

In the context of time-subordinated Brownian motion models, Fourier theory and methodology are proposed to modelling the stochastic distribution of time increments. Gaussian Variance-Mean mixtures and time-subordinated models are reviewed…

Mathematical Finance · Quantitative Finance 2025-10-21 Rohan Shenoy , Peter Kempthorne

This paper tackles one of the most fundamental goals in functional time series analysis which is to provide reliable predictions for future functions. Existing methods for predicting a complete future functional observation use only…

Methodology · Statistics 2022-02-08 Shuhao Jiao , Alexander Aue , Hernando Ombao

This paper develops a point impact linear regression model in which the trajectory of a continuous stochastic process, when evaluated at a sensitive time point, is associated with a scalar response. The proposed model complements and is…

Statistics Theory · Mathematics 2010-10-22 Ian W. McKeague , Bodhisattva Sen

An innovative extension of Geometric Brownian Motion model is developed by incorporating a weighting factor and a stochastic function modelled as a mixture of power and trigonometric functions. Simulations based on this Modified Brownian…

Pricing of Securities · Quantitative Finance 2015-07-09 Gurjeet Dhesi , Muhammad Bilal Shakeel , Ling Xiao

We introduce a new class of continuous-time models of the stochastic volatility of asset prices. The models can simultaneously incorporate roughness and slowly decaying autocorrelations, including proper long memory, which are two stylized…

Statistical Finance · Quantitative Finance 2021-01-06 Mikkel Bennedsen , Asger Lunde , Mikko S. Pakkanen

This work develops a comprehensive mathematical theory for a class of stochastic processes whose local regularity adapts dynamically in response to their own state. We first introduce and rigorously analyze a time-varying fractional…

Probability · Mathematics 2025-12-22 Jiahao Jiang

Fractional Brownian motion, a Gaussian non-Markovian self-similar process with stationary long-correlated increments, has been identified to give rise to the anomalous diffusion behavior in a great variety of physical systems. The…