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We studied non-dynamical stochastic resonance for the number of trades in the stock market. The trade arrival rate presents a deterministic pattern that can be modeled by a cosine function perturbed by noise. Due to the nonlinear…

Trading and Market Microstructure · Quantitative Finance 2008-12-02 A. Christian Silva , Ju-Yi J. Yen

We investigated distributions of short term price trends for high frequency stock market data. A number of trends as a function of their lengths was measured. We found that such a distribution does not fit to results following from an…

Physics and Society · Physics 2009-11-13 Paweł Sieczka , Janusz A. Hołyst

Although stochastic volatility and GARCH (generalized autoregressive conditional heteroscedasticity) models have successfully described the volatility dynamics of univariate asset returns, extending them to the multivariate models with…

Econometrics · Economics 2020-10-09 Yuta Yamauchi , Yasuhiro Omori

This paper models stochastic process of price time series of CSI 300 index in Chinese financial market, analyzes volatility characteristics of intraday high-frequency price data. In the new generalized Barndorff-Nielsen and Shephard model,…

Statistical Finance · Quantitative Finance 2023-01-19 Xianfei Hui , Baiqing Sun , Indranil SenGupta , Yan Zhou , Hui Jiang

Recently the interest of researchers has shifted from the analysis of synchronous relationships of financial instruments to the analysis of more meaningful asynchronous relationships. Both of those analyses are concentrated only on…

Statistical Finance · Quantitative Finance 2014-06-18 Paweł Fiedor

We measure the influence of different time-scales on the dynamics of financial market data. This is obtained by decomposing financial time series into simple oscillations associated with distinct time-scales. We propose two new time-varying…

Statistical Finance · Quantitative Finance 2016-11-23 Noemi Nava , Tiziana Di Matteo , Tomaso Aste

We find a novel correlation structure in the residual noise of stock market returns that is remarkably linked to the composition and stability of the top few significant factors driving the returns, and moreover indicates that the noise…

Risk Management · Quantitative Finance 2009-12-15 Ivailo I. Dimov , Petter N. Kolm , Lee Maclin , Dan Y. C. Shiber

The use of simulated data in the field of causal discovery is ubiquitous due to the scarcity of annotated real data. Recently, Reisach et al., 2021 highlighted the emergence of patterns in simulated linear data, which displays increasing…

Methodology · Statistics 2023-10-24 Francesco Montagna , Nicoletta Noceti , Lorenzo Rosasco , Francesco Locatello

In this paper, we establish a connection between the recently developed data-driven time-frequency analysis \cite{HS11,HS13-1} and the classical second order differential equations. The main idea of the data-driven time-frequency analysis…

Information Theory · Computer Science 2013-12-03 T. Y. Hou , Z. Shi , P. Tavallali

In this paper, we develop econometric tools to analyze the integrated volatility of the efficient price and the dynamic properties of microstructure noise in high-frequency data under general dependent noise. We first develop consistent…

Statistics Theory · Mathematics 2018-06-14 Z. Merrick Li , Roger J. A. Laeven , Michel H. Vellekoop

In this article we consider the volatility inference in the presence of both market microstructure noise and endogenous time. Estimators of the integrated volatility in such a setting are proposed, and their asymptotic properties are…

Statistical Finance · Quantitative Finance 2013-03-26 Yingying Li , Zhiyuan Zhang , Xinghua Zheng

In this paper, we consider the nonstationary matrix-valued time series with common stochastic trends. Unlike the traditional factor analysis which flattens matrix observations into vectors, we adopt a matrix factor model in order to fully…

Econometrics · Economics 2025-08-25 Degui Li , Yayi Yan , Qiwei Yao

We study data-driven stabilization of continuous-time systems in autoregressive form when only noisy input-output data are available. First, we provide an operator-based characterization of the set of systems consistent with the data. Next,…

Optimization and Control · Mathematics 2026-02-04 Masashi Wakaiki

A multivariate score-driven filter is developed to extract signals from noisy vector processes. By assuming that the conditional location vector from a multivariate Student's t distribution changes over time, we construct a robust filter…

Econometrics · Economics 2022-08-31 Enzo D'Innocenzo , Alessandra Luati , Mario Mazzocchi

We study the high frequency price dynamics of traded stocks by a model of returns using a semi-Markov approach. More precisely we assume that the intraday return are described by a discrete time homogeneous semi-Markov process and the…

Statistical Finance · Quantitative Finance 2012-08-24 Guglielmo D'Amico , Filippo Petroni

Predicting the response of nonlinear dynamical systems subject to random, broadband excitation is important across a range of scientific disciplines, such as structural dynamics and neuroscience. Building data-driven models requires…

Machine Learning · Computer Science 2024-09-27 Joseph Massingham , Ole Nielsen , Tore Butlin

We propose a stochastic volatility model for time series of curves. It is motivated by dynamics of intraday price curves that exhibit both between days dependence and intraday price evolution. The curves are suitably normalized to…

Methodology · Statistics 2023-05-09 Piotr Kokoszka , Neda Mohammadi , Haonan Wang , Shixuan Wang

Time-varying volatility is an inherent feature of most economic time-series, which causes standard correlation estimators to be inconsistent. The quadrant correlation estimator is consistent but very inefficient. We propose a novel…

Econometrics · Economics 2023-11-01 Peter Reinhard Hansen , Yiyao Luo

The correlation matrix formalism is used to study temporal aspects of the stock market evolution. This formalism allows to decompose the financial dynamics into noise as well as into some coherent repeatable intraday structures. The present…

Soft Condensed Matter · Physics 2009-11-07 J. Kwapien , S. Drozdz , F. Gruemmer , F. Ruf , J. Speth

In this paper we examine the relation between market returns and volatility measures through machine learning methods in a high-frequency environment. We implement a minute-by-minute rolling window intraday estimation method using two…

Econometrics · Economics 2022-01-03 Iuri H. Ferreira , Marcelo C. Medeiros