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This thesis develops a new framework for modelling price processes in finance, such as an equity price or foreign exchange rate. This can be related to the conventional Ito calculus-based framework through the time integral of a price's…

Mathematical Finance · Quantitative Finance 2025-03-21 Ryan McCrickerd

In this article we prove large deviations principles for high minima of Gaussian processes with nonnegatively correlated increments on arbitrary intervals. Furthermore, we prove large deviations principles for the increments of such…

Probability · Mathematics 2024-04-08 Zachary Selk

Given a supercritical branching random walk $\{Z_n\}_{n\geq 0}$ on $\mathbb{R}$, let $Z_n([y,\infty))$ be the number of particles located in $[y,\infty)\subset\mathbb{R}$ at generation $n$. Let $m$ be the mean of the offspring law of…

Probability · Mathematics 2024-02-07 Shuxiong Zhang , Lianghui Luo

The aim of this paper is to develop estimation and inference methods for the drift parameters of multivariate L\'evy-driven continuous-time autoregressive processes of order $p\in\mathbb{N}$. Starting from a continuous-time observation of…

Methodology · Statistics 2023-07-26 Lorenzo Lucchese , Mikko S. Pakkanen , Almut E. D. Veraart

For finite parameter spaces under finite loss, every Bayes procedure derived from a prior with full support is admissible, and every admissible procedure is Bayes. This relationship already breaks down once we move to finite-dimensional…

Statistics Theory · Mathematics 2017-02-17 Haosui Duanmu , Daniel M. Roy

We develop at-the-money call-price and implied volatility asymptotic expansions in time to maturity for a class of asset-price models whose log returns follow a L\'evy process. Under mild assumptions placing the driving L\'evy process in…

Pricing of Securities · Quantitative Finance 2026-05-25 Allen Hoffmeyer , Christian Houdré

We apply multilevel Monte Carlo for option pricing problems using exponential L\'{e}vy models with a uniform timestep discretisation to monitor the running maximum required for lookback and barrier options. The numerical results demonstrate…

Computational Finance · Quantitative Finance 2017-05-31 Mike Giles , Yuan Xia

We present shrinking targets results for general systems with the emphasis on applications for IETs (interval exchange transformations) $(J,T)$, $J=[0,1)$. In particular, we prove that if an IET $(J,T)$ is ergodic (relative to the Lebesgue…

Dynamical Systems · Mathematics 2012-09-28 Michael Boshernitzan , Jon Chaika

Many partially-successful attempts have been made to find the most natural discrete-variable version of Shannon's entropy power inequality (EPI). We develop an axiomatic framework from which we deduce the natural form of a discrete-variable…

Information Theory · Computer Science 2016-11-17 Saikat Guha , Jeffrey H. Shapiro , Raul Garcia-Patron Sanchez

We study the nonparametric calibration of exponential L\'{e}vy models with infinite jump activity. In particular our analysis applies to self-decomposable processes whose jump density can be characterized by the $k$-function, which is…

Statistics Theory · Mathematics 2014-02-05 Mathias Trabs

Exponential L\'evy processes can be used to model the evolution of various financial variables such as FX rates, stock prices, etc. Considerable efforts have been devoted to pricing derivatives written on underliers governed by such…

Pricing of Securities · Quantitative Finance 2012-06-29 Leif Andersen , Alexander Lipton

Extreme value (EV) statistics of correlated systems are widely investigated in many fields, spanning the spectrum from weather forecasting to earthquake prediction. Does the unavoidable discrete sampling of a continuous correlated…

Statistical Mechanics · Physics 2022-08-29 Lior Zarfaty , Eli Barkai , David A. Kessler

We survey known solutions to the infinite extendibility problem for (necessarily exchangeable) probability laws on $\mathbb{R}^d$, which is: Can a given random vector $\vec{X} = (X_1,\ldots,X_d)$ be represented in distribution as the first…

Probability · Mathematics 2020-11-06 Jan-Frederik Mai

The ensemble Kalman inversion (EKI) for the solution of Bayesian inverse problems of type $y = A u +\varepsilon$, with $u$ being an unknown parameter, $y$ a given datum, and $\varepsilon$ measurement noise, is a powerful tool usually…

Numerical Analysis · Mathematics 2023-03-16 Leon Bungert , Philipp Wacker

In this paper, we study the sensitivity of discrete-time dynamic programs with nonlinear dynamics and objective to perturbations in the initial conditions and reference parameters. Under uniform controllability and boundedness assumptions…

Numerical Analysis · Mathematics 2019-12-17 Sen Na , Mihai Anitescu

We study the increase in per-sample differential entropy rate of random sequences and processes after being passed through a non minimum-phase (NMP) discrete-time, linear time-invariant (LTI) filter G. For such filters and random processes,…

Information Theory · Computer Science 2015-12-14 Milan S. Derpich , Matías Müller , Jan Østergaard

We prove non-asymptotic error bounds for particle gradient descent (PGD, Kuntz et al., 2023), a recently introduced algorithm for maximum likelihood estimation of large latent variable models obtained by discretizing a gradient flow of the…

Machine Learning · Computer Science 2025-07-17 Rocco Caprio , Juan Kuntz , Samuel Power , Adam M. Johansen

In the present article we study strong approximation of solutions of scalar stochastic differential equations (SDEs) with bounded and $\alpha$-H\"older continuous drift coefficient and constant diffusion coefficient at time point $1$.…

Probability · Mathematics 2025-04-30 Simon Ellinger , Thomas Müller-Gronbach , Larisa Yaroslavtseva

Exchangeability -- in which the distribution of an infinite sequence is invariant to reorderings of its elements -- implies the existence of a simple conditional independence structure that may be leveraged in the design of statistical…

Statistics Theory · Mathematics 2022-07-25 Trevor Campbell , Saifuddin Syed , Chiao-Yu Yang , Michael I. Jordan , Tamara Broderick

Let $B=\{ B_{t}\} _{t\ge 0}$ be a one-dimensional standard Brownian motion. As an application of a recent result of ours on exponential functionals of Brownian motion, we show in this paper that, for every fixed $t>0$, the process given by…

Probability · Mathematics 2025-05-22 Yuu Hariya