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Stochastic differential equations (SDEs) are increasingly used in longitudinal data analysis, compartmental models, growth modelling, and other applications in a number of disciplines. Parameter estimation, however, currently requires…

Methodology · Statistics 2018-09-12 Oscar García

Parametric estimation of stochastic differential equations (SDEs) has been a subject of intense studies already for several decades. The Heston model for instance is driven by two coupled SDEs and is often used in financial mathematics for…

Mathematical Finance · Quantitative Finance 2022-11-29 Jarosław Gruszka , Janusz Szwabiński

Spatially distributed problems are often approximately modelled in terms of partial differential equations (PDEs) for appropriate coarse-grained quantities (e.g. concentrations). The derivation of accurate such PDEs starting from finer…

Quantitative Methods · Quantitative Biology 2009-11-13 Liang Qiao , Radek Erban , C. T. Kelley , Ioannis G. Kevrekidis

This article introduces a framework for measuring the uncertain behaviour of a changing system in terms of the solution of a class of fractional stochastic differential equations (fsDEs). This is accomplished via operational matrices based…

General Mathematics · Mathematics 2025-06-03 O. T. Birgani , J. F. Peters , S. Kouhkani

SABR models have been used to incorporate stochastic volatility to LIBOR market models (LMM) in order to describe interest rate dynamics and price interest rate derivatives. From the numerical point of view, the pricing of derivatives with…

Analysis of PDEs · Mathematics 2024-08-02 J. G. López-Salas , C. Vázquez

In this article, we construct a numerical method for a stochastic version of the Susceptible Infected Susceptible (SIS) epidemic model, expressed by a suitable stochastic differential equation (SDE), by using the semi-discrete method to a…

Numerical Analysis · Mathematics 2023-07-28 Yiannis Kiouvrekis , Ioannis S. Stamatiou

We consider assets for which price $X_t$ and squared volatility $Y_t$ are jointly driven by Heston joint stochastic differential equations (SDEs). When the parameters of these SDEs are estimated from $N$ sub-sampled data $(X_{nT}, Y_{nT})$,…

Mathematical Finance · Quantitative Finance 2015-07-22 Robert Azencott , Yutheeka Gadhyan , Roland Glowinski

The theory of measurements continuous in time in quantum mechanics (quantum continual measurements) has been formulated by using the notions of instrument and positive operator valued measure, functional integrals, quantum stochastic…

Probability · Mathematics 2007-05-23 Alberto Barchielli , Anna Maria Paganoni

In this paper, we consider a system of homogeneous algebraic equations in complex variables and their conjugates, which arise naturally from the range criterion for separability of PPT states. We examine systematically these equations to…

Quantum Physics · Physics 2015-06-02 Young-Hoon Kiem , Seung-Hyeok Kye , Joohan Na

This paper deals with the process $X = (X_t)_{t\in [0,T]}$ defined by the stochastic differential equation (SDE) $dX_t = (a(X_t) + b(Y_t))dt +\sigma(X_t)dW_1(t)$, where $W_1$ is a Brownian motion and $Y$ is an exogenous process. The first…

Statistics Theory · Mathematics 2025-07-09 Fabienne Comte , Nicolas Marie

The purpose of this paper is twofold. Firstly, the new matrix domains are constructed with the new infinite matrices and some properties are investigated. Furthermore, dual spaces of new matrix domains are computed and matrix…

Functional Analysis · Mathematics 2016-11-29 Murat Kirisci

We present a universal framework for simulating $N$-dimensional linear It\^o stochastic differential equations (SDEs) on quantum computers with additive or multiplicative noises. Building on a unitary dilation technique, we establish a…

Quantum Physics · Physics 2026-02-19 Hsuan-Cheng Wu , Xiantao Li

We study the existence and uniqueness of rank-based interacting systems of stochastic differential equations. These systems can be seen as modifications with state-dependent coefficients of the Atlas model in mathematical finance. The…

Probability · Mathematics 2026-01-13 Hélène Guérin , Nathalie Krell

The Schwinger-Dyson Equations (SDEs) of matrix models are known to form (half) a Virasoro algebra and have become a standard tool to solve matrix models. The algebra generated by SDEs in tensor models (for random tensors in a suitable…

High Energy Physics - Theory · Physics 2015-06-11 Valentin Bonzom

This paper considers method of creation of an advisor and indicator based on the spectral stochastic analysis model, both with linear and non-linear approximation. The problem of entrance to one or another trade position is solved on the…

Portfolio Management · Quantitative Finance 2014-06-19 A. M. Avdeenko

We introduce a prototype model in an attempt to capture some aspects of market dynamics simulating a trading mechanism. The model description starts with a discrete-space, continuous-time Markov process describing arrival and movement of…

Trading and Market Microstructure · Quantitative Finance 2013-04-04 N. Vvedenskaya , Y. Suhov , V. Belitsky

Simulation-based techniques such as variants of stochastic Runge-Kutta are the de facto approach for inference with stochastic differential equations (SDEs) in machine learning. These methods are general-purpose and used with parametric and…

Machine Learning · Computer Science 2021-11-01 Arno Solin , Ella Tamir , Prakhar Verma

We introduce a framework for stochastic differential equations (SDEs) with interaction on compact, connected, $d$-dimensional manifolds. For SDEs whose drift and diffusion coefficients may depend on both the state variable and the empirical…

Probability · Mathematics 2026-01-27 Andrey Dorogovtsev , Alexander Weiß

In this paper, we introduce a novel framework to model the exchange rate dynamics between two intrinsically linked cryptoassets, such as stablecoins pegged to the same fiat currency or a liquid staking token and its associated native token.…

Trading and Market Microstructure · Quantitative Finance 2024-11-14 Philippe Bergault , Louis Bertucci , David Bouba , Olivier Guéant , Julien Guilbert

Marcus stochastic delay differential equations (SDDEs) are often used to model stochastic dynamical systems with memory in science and engineering. Since no infinitesimal generators exist for Marcus SDDEs due to the non-Markovian property,…

Dynamical Systems · Mathematics 2021-02-23 Fang Yang , Xu Sun