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In a quenched mesoscopic fluid, modelling transport processes at high densities, we perform computer simulations of the single particle energy autocorrelation function C_e(t), which is essentially a return probability. This is done to test…

Statistical Mechanics · Physics 2009-11-11 M. Ripoll , M. H. Ernst

Based on the concept of self-decomposability, we extend some recent multivariate L\'evy models built using multivariate subordination with the aim of capturing situations in which a sudden event in one market is propagated onto related…

Pricing of Securities · Quantitative Finance 2020-07-31 Matteo Gardini , Piergiacomo Sabino , Emanuela Sasso

Various works have already showed that common shocks and cross-country financial linkages caused the banking systems of several countries to be highly interconnected with the result that during bad times, banking crises may arise…

Statistical Finance · Quantitative Finance 2019-04-30 Paolo Di Caro , Giuseppe Pernagallo , Antonino Damiano Rossello , Benedetto Torrisi

Modern evolvements of the technologies have been leading to a profound influence on the financial market. The introduction of constituents like Exchange-Traded Funds, and the wide-use of advanced technologies such as algorithmic trading,…

Statistical Finance · Quantitative Finance 2021-08-20 Liao Zhu

The mathematics of linear fits is presented in covariant form. Topics include: correlated data, covariance matrices, joint fits to multiple data sets, constraints, and extension of the formalism to non-linear fits. A brief summary at the…

Astrophysics · Physics 2007-05-23 Andrew Gould

Discrimination between non-stationarity and long-range dependency is a difficult and long-standing issue in modelling financial time series. This paper uses an adaptive spectral technique which jointly models the non-stationarity and…

Statistical Finance · Quantitative Finance 2019-02-12 Nick James , Roman Marchant , Richard Gerlach , Sally Cripps

Classical and more recent tests for detecting distributional changes in multivariate time series often lack power against alternatives that involve changes in the cross-sectional dependence structure. To be able to detect such changes…

Statistics Theory · Mathematics 2014-09-16 Axel Bücher , Ivan Kojadinovic , Tom Rohmer , Johan Segers

For over a century canonical correlations, variables, and related concepts have been studied across various fields, with contributions dating back to Jordan [1875] and Hotelling [1936]. This text surveys the evolution of canonical…

Methodology · Statistics 2025-11-07 Anna Bykhovskaya , Vadim Gorin

As energy markets begin clearing at sub-hourly rates, their interaction with load control systems becomes a potentially important consideration. A simple model for the control of thermal systems using market-based power distribution…

Chaotic Dynamics · Physics 2008-12-02 Nicolas Ho , David P. Chassin

Time series forecasting is crucial for decision-making across various domains, particularly in financial markets where stock prices exhibit complex and non-linear behaviors. Accurately predicting future price movements is challenging due to…

General Economics · Economics 2025-04-29 Tiantian Tu

The problem of error growth due to the incomplete knowledge of the evolution law which rules the dynamics of a given physical system is addressed. Major interest is devoted to the analysis of error amplification in systems with many…

chao-dyn · Physics 2009-10-31 G. Boffetta , A. Celani , M. Cencini , G. Lacorata , A. Vulpiani

A detailed analysis of correlation between stock returns at high frequency is compared with simple models of random walks. We focus in particular on the dependence of correlations on time scales - the so-called Epps effect. This provides a…

Trading and Market Microstructure · Quantitative Finance 2015-05-20 Iacopo Mastromatteo , Matteo Marsili , Patrick Zoi

We analyze the price return distributions of currency exchange rates, cryptocurrencies, and contracts for differences (CFDs) representing stock indices, stock shares, and commodities. Based on recent data from the years 2017--2020, we model…

Statistical Finance · Quantitative Finance 2021-07-15 Marcin Wątorek , Jarosław Kwapień , Stanisław Drożdż

Multivariate time series classification is a task with increasing importance due to the proliferation of new problems in various fields (economy, health, energy, transport, crops, etc.) where a large number of information sources are…

Machine Learning · Computer Science 2020-09-09 Francisco J. Baldán , José M. Benítez

In this paper, we provide a simple, ``generic'' interpretation of multifractal scaling laws and multiplicative cascade process paradigms in terms of volatility correlations. We show that in this context 1/f power spectra, as observed…

Condensed Matter · Physics 2009-10-31 J. F. Muzy , J. Delour , E. Bacry

Long range dependence or long memory is a feature of many processes in the natural world, which provides important insights on the underlying mechanisms that generate the observed data. The usual tools available to characterize the…

Populations and Evolution · Quantitative Biology 2016-05-11 Hugo C. Mendes , Alberto Murta , R. Vilela Mendes

We investigate long-duration time series of human physical activity under three different conditions: healthy individuals in (i) a constant routine protocol and (ii) in regular daily routine, and (iii) individuals diagnosed with multiple…

This article proposes a generalized notion of extreme multivariate dependence between two random vectors which relies on the extremality of the cross-covariance matrix between these two vectors. Using a partial ordering on the…

Econometrics · Economics 2021-02-10 Damien Bosc , Alfred Galichon

We examine the Detrended Fluctuation Analysis (DFA), which is a well-established method for the detection of long-range correlations in time series. We show that deviations from scaling that appear at small time scales become stronger in…

Statistical Mechanics · Physics 2009-11-07 Jan W. Kantelhardt , Eva Koscielny-Bunde , Henio H. A. Rego , Shlomo Havlin , Armin Bunde

This paper derives the expressions of correlations between prices of two assets, returns of two assets, and price-return correlations of two assets that depend on statistical moments and correlations of the current values, past values, and…

General Economics · Economics 2024-12-18 Victor Olkhov
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