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We investigate the asymptotic behaviour of the implied volatility in the Bachelier setting, extending the large-strike results established for the Black-Scholes framework. Exploiting the theory of regular variation, we derive explicit…

Pricing of Securities · Quantitative Finance 2026-02-24 Roberto Baviera , Michele Domenico Massaria

We consider a new approach in the definition of two-dimensional heavy-tailed distributions. Namely, we introduce the classes of two-dimensional long-tailed, of twodimensional dominatedly varying and of two-dimensional consistently varying…

Probability · Mathematics 2025-06-25 Dimitrios G. Konstantinides , Charalampos D. Passalidis

We consider a sequence of four variable polynomials by refining Stieltjes' continued fraction for Eulerian polynomials. Using combinatorial theory of Jacobi-type continued fractions and bijections we derive various combinatorial…

Combinatorics · Mathematics 2021-09-09 Bin Han , Jianxi Mao , Jiang Zeng

It is well known that the Poisson-Boltzmann (PB) equation yields the exact counterion density around charged objects in the weak coupling limit. In this paper we generalize the PB approach to account for coupling of arbitrary strength by…

Soft Condensed Matter · Physics 2007-05-23 V. Garcia-Morales , J. Cervera , J. Pellicer

We propose an extension of quasi-Newton methods, and investigate the convergence and the robustness properties of the proposed update formulae for the approximate Hessian matrix. Fletcher has studied a variational problem which derives the…

Computation · Statistics 2010-10-15 Takafumi Kanamori , Atsumi Ohara

We introduce general regular variation, a theory of regular variation containing the existing Karamata, Bojanic-Karamata/de Haan and Beurling theories as special cases. The unifying theme is the Popa groups of our title viewed as locally…

Classical Analysis and ODEs · Mathematics 2019-01-21 N. H. Bingham , A. J. Ostaszewski

We solve two longstanding major problems in Free Probability. This is achieved by generalising the theory to one with values in arbitrary commutative algebras. We prove the existence of the multi-variable $S$-transform, and show that it is…

Probability · Mathematics 2013-09-25 Roland M. Friedrich , John McKay

This paper deals with the generalized convolutions connected with the Williamson transform and the maximum operation. We focus on such convolutions which can define transition probabilities of renewal processes. They should be monotonic…

Probability · Mathematics 2022-04-21 B. H. Jasiulis-Gołdyn , J. K. Misiewicz , E. Omey , J. Wesołowski

We consider a binary unsupervised classification problem where each observation is associated with an unobserved label that we want to retrieve. More precisely, we assume that there are two groups of observation: normal and abnormal. The…

Machine Learning · Statistics 2011-05-05 Stevenn Volant , Marie-Laure Martin Magniette , Stéphane Robin

Unlike classical and free independence, the boolean and monotone notions of independence lack of the property of independent constants. In the scalar case, this leads to restrictions for the central limit theorems, as observed by F.…

Probability · Mathematics 2021-09-14 Carlos Dias-Aguilera , Tulio Gaxiola , Jorge Santos , Carlos Vargas

We study how Boolean cumulants can be used in order to address operations with freely independent random variables, particularly in connection to the $*$-distribution of the product of two selfadjoint freely independent random variables,…

Operator Algebras · Mathematics 2020-09-24 Maxime Fevrier , Mitja Mastnak , Alexandru Nica , Kamil Szpojankowski

This article extends the framework of Bayesian inverse problems in infinite-dimensional parameter spaces, as advocated by Stuart (Acta Numer. 19:451--559, 2010) and others, to the case of a heavy-tailed prior measure in the family of stable…

Probability · Mathematics 2018-05-23 T. J. Sullivan

We extend to arbitrary measures results of Bao, Erd\"os, Schnelli, Moreillon, and Ji on the connectedness of the supports of additive convolutions of measures on \mathbb{R} and of free multiplicative convolutions of measures on…

Operator Algebras · Mathematics 2024-08-14 Serban Belinschi , Hari Bercovici , Ching-Wei Ho

A popular measure of association is the tail dependence coefficient which measures the strength of dependence in either the lower-left or upper-right tail of a bivariate distribution. In this paper, we develop the idea of quantile…

Statistics Theory · Mathematics 2024-02-09 A. Dastbaravarde , A. Dolati

This paper introduces an extension to the normal distribution through the polar method to capture bimodality and asymmetry, which are often observed characteristics of empirical data. The later two features are entirely controlled by a…

Statistics Theory · Mathematics 2020-08-31 Masoud Faridi , Majid Jafari Khaledi

Fulton and MacPherson introduced the notion of bivariant theories and Grothendieck transformations related to Riemann-Roch-theorems. But there are many situations, where such a bivariant theory or a corresponding Grothendieck transformation…

Algebraic Geometry · Mathematics 2007-05-23 Joerg Schuermann

Despite the successes of probabilistic models based on passing noise through neural networks, recent work has identified that such methods often fail to capture tail behavior accurately, unless the tails of the base distribution are…

Machine Learning · Statistics 2023-06-16 Feynman Liang , Liam Hodgkinson , Michael W. Mahoney

We generalize the Beckner's type Poincar\'e inequality \cite{Beckner} to a large class of probability measures on an abstract Wiener space of the form $\mu\star\nu$, where $\mu$ is the reference Gaussian measure and $\nu$ is a probability…

Probability · Mathematics 2014-09-23 Paolo Da Pelo , Alberto Lanconelli , Aurel I. Stan

The paper introduces scaled Bregman distances of probability distributions which admit non-uniform contributions of observed events. They are introduced in a general form covering not only the distances of discrete and continuous stochastic…

Information Theory · Computer Science 2021-05-12 Wolfgang Stummer , Igor Vajda

The remarkable generalization performance of large-scale models has been challenging the conventional wisdom of the statistical learning theory. Although recent theoretical studies have shed light on this behavior in linear models and…

Machine Learning · Statistics 2024-06-18 Tomoya Wakayama