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It is difficult to choose detection thresholds for tests of non-stationarity that assume {\em a priori} a noise model if the data is statistically uncharacterized to begin with. This is a potentially serious problem when an automated…

General Relativity and Quantum Cosmology · Physics 2009-12-30 Soumya D. Mohanty

The sporadic large fluctuations are seen in the stock market due to changes in fundamental parameters, technical setups, and external factors. These large fluctuations are termed as Extreme Events (EE). The EEs may be positive or negative…

Statistical Finance · Quantitative Finance 2023-08-09 Anish Rai , Salam Rabindrajit Luwang , Md Nurujjaman , Chittaranjan Hens , Pratyay Kuila , Kanish Debnath

Many networks have event-driven dynamics (such as communication, social media and criminal networks), where the mean rate of the events occurring at a node in the network changes according to the occurrence of other events in the network.…

Social and Information Networks · Computer Science 2023-03-22 Santitissadeekorn N. , Delahaies S. , Lloyd D. J. B

The Hawkes process has garnered attention in recent years for its suitability to describe the behavior of online information cascades. Here, we present a fully tractable approach to analytically describe the distribution of the number of…

Physics and Society · Physics 2020-07-22 Joseph D. O'Brien , Alberto Aleta , Yamir Moreno , James P. Gleeson

We consider the problem of detecting abrupt changes (i.e., large jump discontinuities) in the rate function of a point process. The rate function is assumed to be fully unknown, non-stationary, and may itself be a random process that…

Statistics Theory · Mathematics 2025-01-16 Anna Brandenberger , Elchanan Mossel , Anirudh Sridhar

The self-exciting Hawkes process is widely used to model events which occur in bursts. However, many real world data sets contain missing events and/or noisily observed event times, which we refer to as data distortion. The presence of such…

Applications · Statistics 2021-06-03 Isabella Deutsch , Gordon J. Ross

A univariate Hawkes process is a simple point process that is self-exciting and has clustering effect. The intensity of this point process is given by the sum of a baseline intensity and another term that depends on the entire past history…

Probability · Mathematics 2018-10-04 Xuefeng Gao , Lingjiong Zhu

This chapter first presents a rather personal view of some different aspects of predictability, going in crescendo from simple linear systems to high-dimensional nonlinear systems with stochastic forcing, which exhibit emergent properties…

Geophysics · Physics 2014-08-26 Didier Sornette , Ivan Osorio

This study examines the use of a recurrent neural network for estimating the parameters of a Hawkes model based on high-frequency financial data, and subsequently, for computing volatility. Neural networks have shown promising results in…

Statistical Finance · Quantitative Finance 2023-04-25 Kyungsub Lee

We investigate spatio-temporal event analysis using point processes. Inferring the dynamics of event sequences spatiotemporally has many practical applications including crime prediction, social media analysis, and traffic forecasting. In…

Machine Learning · Computer Science 2021-02-17 Fatih Ilhan , Suleyman Serdar Kozat

This study proposes a versatile model for the dynamics of the best bid and ask prices using an extended Hawkes process. The model incorporates the zero intensities of the spread-narrowing processes at the minimum bid-ask spread,…

Trading and Market Microstructure · Quantitative Finance 2022-01-26 Kyungsub Lee , Byoung Ki Seo

This paper proposes a new approach for change point detection in multivariate Hawkes processes using Fr\'echet statistic of a network. The method splits the point process into overlapping windows, estimates kernel matrices in each window,…

Machine Learning · Statistics 2025-01-23 Rui Luo , Vikram Krishnamurthy

Multivariate point processes are widely applied to model event-type data such as natural disasters, online message exchanges, financial transactions or neuronal spike trains. One very popular point process model in which the probability of…

Statistics Theory · Mathematics 2023-01-27 Deborah Sulem , Vincent Rivoirard , Judith Rousseau

We consider a 2-dimensional marked Hawkes process with increasing baseline intensity in order to model prices on electricity intraday markets. This model allows to represent different empirical facts such as increasing market activity,…

Trading and Market Microstructure · Quantitative Finance 2021-03-17 Thomas Deschatre , Pierre Gruet

We propose a simulation method for multidimensional Hawkes processes based on superposition theory of point processes. This formulation allows us to design efficient simulations for Hawkes processes with differing exponentially decaying…

Machine Learning · Statistics 2018-03-14 Kar Wai Lim , Young Lee , Leif Hanlen , Hongbiao Zhao

Multivariate Hawkes processes are a widely used class of self-exciting point processes, but maximum likelihood estimation naively scales as $O(N^2)$ in the number of events. The canonical linear exponential Hawkes process admits a faster…

Machine Learning · Computer Science 2026-05-07 Ahmer Raza , Hudson Smith

We present a Hawkes model approach to foreign exchange market in which the high frequency price dynamics is affected by a self exciting mechanism and an exogenous component, generated by the pre-announced arrival of macroeconomic news. By…

Trading and Market Microstructure · Quantitative Finance 2015-06-19 Marcello Rambaldi , Paris Pennesi , Fabrizio Lillo

This work delves into presenting a probabilistic method for analyzing linear process data with weakly dependent innovations, focusing on detecting change-points in the mean and estimating its spectral density. We develop a test for…

Statistics Theory · Mathematics 2024-10-01 Ramkrishna Jyoti Samanta

We consider the stochastic volatility model obtained by adding a compound Hawkes process to the volatility of the well-known Heston model. A Hawkes process is a self-exciting counting process with many applications in mathematical finance,…

Probability · Mathematics 2022-10-28 David R. Baños , Salvador Ortiz-Latorre , Oriol Zamora Font

We introduce a point process regression model that is applicable to price models and limit order book models. Hawkes type autoregression in the intensity process is generalized to a stochastic regression to covariate processes. We establish…

Statistics Theory · Mathematics 2015-12-08 Teppei Ogihara , Nakahiro Yoshida