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We propose a simple continuous time model for modeling the lead-lag effect between two financial assets. A two-dimensional process $(X_t,Y_t)$ reproduces a lead-lag effect if, for some time shift $\vartheta\in \mathbb{R}$, the process…

Statistics Theory · Mathematics 2013-03-21 M. Hoffmann , M. Rosenbaum , N. Yoshida

Investigating the relationship, particularly the lead-lag effect, between time series is a common question across various disciplines, especially when uncovering biological process. However, analyzing time series presents several…

This paper develops a threshold model with a time-varying threshold, represented using a wavelet series expansion. The model adequately captures irregular and abrupt variations, as well as smooth changes in the threshold parameter, allowing…

Methodology · Statistics 2026-05-19 Rhea Davis , N. Balakrishna

In this paper we use wavelet concepts to show that correlation coefficient between two financial data's is not constant but varies with scale from high correlation value to strongly anti-correlation value This studies is important because…

Statistical Mechanics · Physics 2009-11-10 Ashok Razdan

The method of element analysis is proposed here as an alternative to traditional wavelet-based approaches to analyzing perturbations in financial signals by scale. In this method, the processes that generate oscillations in financial…

Statistical Finance · Quantitative Finance 2023-02-01 Nathan Zavanelli

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

Lead-lag relationships among assets represent a useful tool for analyzing high frequency financial data. However, research on these relationships predominantly focuses on correlation analyses for the dynamics of stock prices, spots and…

Statistical Finance · Quantitative Finance 2020-01-08 Lasko Basnarkov , Viktor Stojkoski , Zoran Utkovski , Ljupco Kocarev

We propose a new framework for measuring connectedness among financial variables that arises due to heterogeneous frequency responses to shocks. To estimate connectedness in short-, medium-, and long-term financial cycles, we introduce a…

Methodology · Statistics 2017-12-20 Jozef Barunik , Tomas Krehlik

We present a methodology for the study of the dispersion of trajectories of stochastic processes in reconstructed phase spaces from observed data. The methodology allows to find ensembles of analog states, i.e. states that are close in the…

Chaotic Dynamics · Physics 2026-02-18 Carlos Granero-Belinchon

Distributed lag models (DLMs) express the cumulative and delayed dependence between pairs of time-indexed response and explanatory variables. In practical application, users of DLMs examine the estimated influence of a series of lagged…

Applications · Statistics 2018-01-23 Alastair Rushworth

Experimentally observed networks of interacting dynamical systems are inferred from recorded multivariate time series by evaluating a statistical measure of dependence, usually the cross-correlation coefficient, or mutual information. These…

Data Analysis, Statistics and Probability · Physics 2017-07-03 Milan Palus

We consider waves propagating in a randomly layered medium with long-range correlations. An example of such a medium is studied in \citeMS and leads, in particular, to an asymptotic travel time described in terms of a fractional Brownian…

Probability · Mathematics 2011-01-04 Renaud Marty , Knut Sølna

In this paper we exploit the wavelet analysis approach to investigate oil-food price correlation and its determinants in the domains of time and frequency. Wavelet analysis is able to differentiate high frequency from low frequency…

Computational Finance · Quantitative Finance 2022-03-24 Loretta Mastroeni , Alessandro Mazzoccoli , Greta Quaresima , Pierluigi Vellucci

Wavelets provide the flexibility to analyse stochastic processes at different scales. Here, we apply them to multivariate point processes as a means of detecting and analysing unknown non-stationarity, both within and across data streams.…

Methodology · Statistics 2020-11-04 Edward A. K. Cohen , Alexander J. Gibberd

We create a framework to analyse the timing and frequency of instantaneous interactions between pairs of entities. This type of interaction data is especially common nowadays, and easily available. Examples of instantaneous interactions…

Methodology · Statistics 2021-04-01 Riccardo Rastelli , Marco Corneli

The existence of time-lagged cross-correlations between the returns of a pair of assets, which is known as the lead-lag relationship, is a well-known stylized fact in financial econometrics. Recently some continuous-time models have been…

Mathematical Finance · Quantitative Finance 2017-12-29 Takaki Hayashi , Yuta Koike

In this study, we perform some analysis for the probability distributions in the space of frequency and time variables. However, in the domain of high frequencies, it behaves in such a way as the highly non-linear dynamics. The wavelet…

General Finance · Quantitative Finance 2024-11-22 Tatsuru Kikuchi

Some techniques for the study of intermittency by means of wavelet transforms, are presented on an example of synthetic turbulent signal. Several features of the turbulent field, that cannot be probed looking at standard structure function…

chao-dyn · Physics 2007-05-23 Piero Olla , Paolo Paradisi

In our previous study we have presented an approach to studying lead--lag effect in financial markets using information and network theories. Methodology presented there, as well as previous studies using Pearson's correlation for the same…

Statistical Finance · Quantitative Finance 2014-07-21 Paweł Fiedor

We present the applications of wavelet analysis methods in constrained variational framework to calculation of dynamical aperture. We construct represention via exact nonlinear high-localized periodic eigenmodes expansions, which allows to…

Accelerator Physics · Physics 2007-05-23 Antonina N. Fedorova , Michael G. Zeitlin