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We present a detailed study on the mean first-passage time of volatility processes. We analyze the theoretical expressions based on the most common stochastic volatility models along with empirical results extracted from daily data of major…

Physics and Society · Physics 2008-12-02 Jaume Masoliver , Josep Perello

In this paper we characterize the distribution of the first exit time from an arbitrary open set for a class of semi-Markov processes obtained as time-changed Markov processes. We estimate the asymptotic behaviour of the survival function…

Probability · Mathematics 2019-03-05 Giacomo Ascione , Enrica Pirozzi , Bruno Toaldo

The paper deals with the asymptotic behavior of the bridge of a Gaussian process conditioned to stay in $n$ fixed points at $n$ fixed past instants. In particular, functional large deviation results are stated for small time. Several…

Probability · Mathematics 2016-04-06 L. Caramellino , B. Pacchiarotti

We introduce an exact probabilistic description for L=2 of the Barab\'asi model for the dynamics of a list of L tasks. This permits to study the problem out of stationarity, and to solve explicitly the extremal limit case where a critical…

Physics and Society · Physics 2007-05-23 Andrea Gabrielli , Guido Caldarelli

We study here the escape time for the fastest diffusing particle from the boundary of an interval with point-sink killing sources. Killing represents a degradation that leads to the probabilistic removal of the moving Brownian particles. We…

Statistical Mechanics · Physics 2023-02-27 Suney Toste , David Holcman

We investigate the tail distribution of the first exit time of Brownian motion with drift from a cone and find its exact asymptotics for a large class of cones. Our results show in particular that its exponential decreasing rate is a…

Probability · Mathematics 2014-08-19 Rodolphe Garbit , Kilian Raschel

In this paper we introduce a new method for the simulation of the exit time and position of a $\delta$-dimensional Brownian motion from a domain. The main interest of our method is that it avoids splitting time schemes as well as inversion…

Probability · Mathematics 2015-10-19 Madalina Deaconu , Samuel Herrmann , Sylvain Maire

Motivated by the existing difficulties in establishing mathematical models and in observing the system state time series for some complex systems, especially for those driven by non-Gaussian Levy motion, we devise a method for extracting…

Computational Engineering, Finance, and Science · Computer Science 2020-12-02 Yanxia Zhang , Jinqiao Duan , Yanfei Jin , Yang Li

Diffusion processes driven by Fractional Brownian motion (FBM) have often been considered in modeling stock price dynamics in order to capture the long range dependence of stock price observed in reality. Option prices for such models had…

Statistics Theory · Mathematics 2024-05-29 Ananya Lahiri , Rituparna Sen

We consider a Markovian jumping process with two absorbing barriers, for which the waiting-time distribution involves a position-dependent coefficient. We solve the Fokker-Planck equation with boundary conditions and calculate the mean…

Statistical Mechanics · Physics 2007-10-16 A. Kamińska , T. Srokowski

We derive a functional equation for the mean first-passage time (MFPT) of a generic self-similar Markovian continuous process to a target in a one-dimensional domain and obtain its exact solution. We show that the obtained expression of the…

Statistical Mechanics · Physics 2015-05-27 Vincent Tejedor , Olivier Bénichou , Ralf Metzler , Raphael Voituriez

In this paper, we introduce a mathematical apparatus that is relevant for understanding a dynamical system with small random perturbations and coupled with the so-called transmutation process -- where the latter jumps from one mode to…

Dynamical Systems · Mathematics 2017-09-15 Getachew K. Befekadu

We are interested in populations in which the fitness of different genetic types fluctuates in time and space, driven by temporal and spatial fluctuations in the environment. For simplicity, our population is assumed to be composed of just…

Probability · Mathematics 2018-12-21 Niloy Biswas , Alison Etheridge , Aleksander Klimek

Several two-boundary problems are solved for a special L\'{e}vy process: the Poisson process with an exponential component. The jumps of this process are controlled by a homogeneous Poisson process, the positive jump size distribution is…

Probability · Mathematics 2016-08-14 Tetyana Kadankova , Noël Veraverbeke

An intense research on financial market microstructure is presently in progress. Continuous time random walks (CTRWs) are general models capable to capture the small-scale properties that high frequency data series show. The use of CTRW…

Physics and Society · Physics 2008-12-02 Miquel Montero , Jaume Masoliver

We investigate piecewise-linear stochastic models as with regards to the probability distribution of functionals of the stochastic processes, a question which occurs frequently in large deviation theory. The functionals that we are looking…

Statistical Mechanics · Physics 2015-06-22 Yaming Chen , Wolfram Just

We derive asymptotic formulas for the mean exit time $\bar{\tau}^{N}$ of the fastest among $N$ identical independently distributed Brownian particles to an absorbing boundary for various initial distributions (partially uniformly and…

Data Analysis, Statistics and Probability · Physics 2021-07-07 Suney Toste , David Holcman

For the concrete model of Brownian particles dynamics in non-uniform environment, the time interval estimation is constructed, on which phenomenological Fick laws for diffusion phenomenon description can be used. The knowledge of these…

Probability · Mathematics 2012-12-11 V. A Doobko

We investigated the quality of forecasting of fractional Brownian motion, and new method for estimating of Hurst exponent is validated. Stochastic model of the time series in the form of converted fractional Brownian motion is proposed. The…

Probability · Mathematics 2017-04-05 Valeria Bondarenko , Victor Bondarenko , Kiryl Truskovsky , Ina Taralova

We consider a stochastic population model where the intrinsic or demographic noise causes cycling between states before the population eventually goes extinct. A master equation approach coupled with a WKB (Wentzel-Kramers-Brillouin)…

Populations and Evolution · Quantitative Biology 2014-12-16 Garrett Nieddu , Lora Billings , Eric Forgoston