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We develop an entropic framework to model the dynamics of stocks and European Options. Entropic inference is an inductive inference framework equipped with proper tools to handle situations where incomplete information is available. The…

Pricing of Securities · Quantitative Finance 2019-08-20 Mohammad Abedi , Daniel Bartolomeo

We investigate the general problem of how to model the kinematics of stock prices without considering the dynamical causes of motion. We propose a stochastic process with long-range correlated absolute returns. We find that the model is…

Disordered Systems and Neural Networks · Physics 2008-12-02 M. Serva , U. L. Fulco , M. L. Lyra , G. M. Viswanathan

A general method to construct recombinant tree approximations for stochastic volatility models is developed and applied to the Heston model for stock price dynamics. In this application, the resulting approximation is a four tuple Markov…

Computational Finance · Quantitative Finance 2016-08-14 Erdinç Akyıldırım , Yan Dolinsky , H. Mete Soner

Symbolic Regression is the study of algorithms that automate the search for analytic expressions that fit data. While recent advances in deep learning have generated renewed interest in such approaches, the development of symbolic…

Instrumentation and Methods for Astrophysics · Physics 2023-12-27 Wassim Tenachi , Rodrigo Ibata , Foivos I. Diakogiannis

Despite successful seminal works on passive systems in the literature, learning free-form physical laws for controlled dynamical systems given experimental data is still an open problem. For decades, symbolic mathematical equations and…

Machine Learning · Computer Science 2021-06-01 Carlos Magno C. O. Valle , Sami Haddadin

In symbolic regression, the search for analytic models is typically driven purely by the prediction error observed on the training data samples. However, when the data samples do not sufficiently cover the input space, the prediction error…

Machine Learning · Computer Science 2020-04-28 J. Kubalík , E. Derner , R. Babuška

Model-based approaches for (bio)process systems often suffer from incomplete knowledge of the underlying physical, chemical, or biological laws. Universal differential equations, which embed neural networks within differential equations,…

Machine Learning · Statistics 2026-05-20 Arno Strouwen

Stochastic dynamical systems arise naturally across nearly all areas of science and engineering. Typically, a dynamical system model is based on some prior knowledge about the underlying dynamics of interest in which probabilistic features…

Computational Engineering, Finance, and Science · Computer Science 2021-09-03 Chao Yin , Xihaier Luo , Ahsan Kareem

The methodology presented provides a quantitative way to characterize investor behavior and price dynamics within a particular asset class and time period. The methodology is applied to a data set consisting of over 250,000 data points of…

General Finance · Quantitative Finance 2020-04-22 Gunduz Caginalp , Mark DeSantis

In the last ten years, the employment of symbolic methods has substantially extended both the theory and the applications of statistics and probability. This survey reviews the development of a symbolic technique arising from classical…

Statistics Theory · Mathematics 2015-12-29 Elvira Di Nardo

Turbulent dynamical systems are characterized by nonlinear interactions and stochastic effects that generate coupled statistical quantities, such as non-zero higher-order moments, which are difficult to capture from data with accuracy. We…

Machine Learning · Computer Science 2026-05-12 Xingjian Xu , Di Qi , Chunmei Wang

Molecular dynamics simulations are widely used across chemistry, physics, and biology, providing quantitative insight into complex processes with atomic detail. However, their limited timescale of a few microseconds is a significant…

Chemical Physics · Physics 2025-04-10 Ofir Blumer , Barak Hirshberg

We show an analysis of multi-dimensional time series via entropy and statistical linguistic techniques. We define three markers encoding the behavior of the series, after it has been translated into a multi-dimensional symbolic sequence.…

Multimedia · Computer Science 2008-03-05 Marco Franciosi , Giulia Menconi

We study the price dynamics of stocks traded in the NASDAQ market by considering the statistical properties of an ensemble of stocks traded simultaneously. For each trading day of our database, we study the ensemble return distribution by…

Statistical Mechanics · Physics 2009-11-07 Fabrizio Lillo , Rosario N. Mantegna

The problem of determining the mathematical model of the dynamics of multi-dimensional control systems in the presence of noise under the condition that the correlation functions cannot be found. Known statistical dynamics of linear systems…

General Mathematics · Mathematics 2013-01-29 V. N. Tibabishev

Although classical spectral analysis is a natural approach to characterise linear systems, it cannot describe a chaotic dynamics. Here, we propose the ordinal spectrum, a method based on a spectral transformation of symbolic sequences, to…

Data Analysis, Statistics and Probability · Physics 2020-09-08 Mario Chavez , Johann H. Martinez

We consider the dynamical behavior of Martin-L\"of random points in dynamical systems over metric spaces with a computable dynamics and a computable invariant measure. We use computable partitions to define a sort of effective symbolic…

Dynamical Systems · Mathematics 2008-04-29 Stefano Galatolo , Mathieu Hoyrup , Cristobal Rojas

The Thermodynamic Formalism provides a rigorous mathematical framework to study quantitative and qualitative aspects of dynamical systems. At its core there is a variational principle corresponding, in its simplest form, to the Maximum…

Neurons and Cognition · Quantitative Biology 2020-12-30 Rodrigo Cofré , Cesar Maldonado , Bruno Cessac

Dynamical systems are used to model a variety of phenomena in which the bifurcation structure is a fundamental characteristic. Here we propose a statistical machine-learning approach to derive lowdimensional models that automatically…

Quantitative Methods · Quantitative Biology 2015-06-11 Yohei Kondo , Kunihiko Kaneko , Shuji Ishihara

Gradient Symbolic Computation is proposed as a means of solving discrete global optimization problems using a neurally plausible continuous stochastic dynamical system. Gradient symbolic dynamics involves two free parameters that must be…

Computation and Language · Computer Science 2018-01-12 Paul Tupper , Paul Smolensky , Pyeong Whan Cho
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