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The Multiplicative Error Model (Engle (2002)) for nonnegative valued processes is specified as the product of a (conditionally autoregressive) scale factor and an innovation process with nonnegative support. A multivariate extension allows…

Statistical Finance · Quantitative Finance 2016-04-06 Fabrizio Cipollini , Robert F. Engle , Giampiero M. Gallo

We present the bond-calculus, a process algebra for modelling biological and chemical systems featuring nonlinear dynamics, multiway interactions, and dynamic bonding of agents. Mathematical models based on differential equations have been…

Logic in Computer Science · Computer Science 2018-05-01 Thomas Wright , Ian Stark

The authors present a method of indicator random processes, applicable to constructing models of jump processes associated with diffusion process. Indicator random processes are processes that take only two values: 1 and 0, in accordance…

Dynamical Systems · Mathematics 2024-02-06 Valery Doobko , Elena Karachanskaya

Many dynamical phenomena display a cyclic behavior, in the sense that time can be partitioned into units within which distributional aspects of a process are homogeneous. In this paper, we introduce a class of models - called conjugate…

Statistics Theory · Mathematics 2017-05-05 Eduardo Horta , Flavio Ziegelmann

In a new type of percolation phase transition, which was observed in a set of non-equilibrium models, each new connection between vertices is chosen from a number of possibilities by an Achlioptas-like algorithm. This causes preferential…

Disordered Systems and Neural Networks · Physics 2015-06-18 R. A. da Costa , S. N. Dorogovtsev , A. V. Goltsev , J. F. F. Mendes

We investigate the multi-loop correlators and the multi-point functions for all of the scaling operators in unitary minimal conformal models coupled to two-dimensional gravity from the two-matrix model. We show that simple fusion rules for…

High Energy Physics - Theory · Physics 2008-02-03 Masahiro Anazawa

This paper proposes to model asset price dynamics with a mixture of diffusion processes where the instantaneous volatility of the underlying diffusion process contains a random vector. The marginal probability distributions of the proposed…

Mathematical Finance · Quantitative Finance 2018-09-20 Xin Liu

We obtain general, exact formulas for the overlaps between the eigenvectors of large correlated random matrices, with additive or multiplicative noise. These results have potential applications in many different contexts, from quantum…

Statistical Mechanics · Physics 2018-12-05 Joël Bun , Jean-Philippe Bouchaud , Marc Potters

Linear mixed models with large imbalanced crossed random effects structures pose severe computational problems for maximum likelihood estimation and for Bayesian analysis. The costs can grow as fast as $N^{3/2}$ when there are N…

Methodology · Statistics 2017-05-30 K. Gao , A. B. Owen

The primary goal of this paper is to characterize solutions to coupled reaction-diffusion systems. Indeed, we use operators theory to show that under suitable assumptions, then the solutions to the reaction-diffusion equations exist. As…

Analysis of PDEs · Mathematics 2007-05-23 Toka Diagana

L\'{e}vy processes with completely monotone jumps appear frequently in various applications of probability. For example, all popular stock price models based on L\'{e}vy processes (such as the Variance Gamma, CGMY/KoBoL and Normal Inverse…

Probability · Mathematics 2016-01-08 Daniel Hackmann , Alexey Kuznetsov

The convergence of a sequence of point processes with dependent points, defined by a symmetric function of iid high-dimensional random vectors, to a Poisson random measure is proved. This also implies the convergence of the joint…

Probability · Mathematics 2024-02-14 Johannes Heiny , Carolin Kleemann

The one-dimensional coagulation-diffusion process describes the strongly fluctuating dynamics of particles, freely hopping between the nearest-neighbour sites of a chain such that one of them disappears with probability 1 if two particles…

Statistical Mechanics · Physics 2016-02-23 Xavier Durang , Jean-Yves Fortin , Malte Henkel

The approach to the calculation of quantum dynamical correlation functions is presented in the framework of the Mori theory. An unified treatment of classic and quantum dynamics is given in terms of Weyl representation of operators and…

Statistical Mechanics · Physics 2009-10-31 R. Giachetti , R. Maciocco , V. Tognetti

This paper considers a simulation-based estimator for a general class of Markovian processes and explores some strong consistency properties of the estimator. The estimation problem is defined over a continuum of invariant distributions…

Probability · Mathematics 2010-01-14 Manuel S. Santos

We analyze correlations among stock returns via a series of widely adopted parameters which we refer to as explanatory variables. We subsequently exploit the results to propose a long only quantitative adaptive technique to construct a…

Statistical Finance · Quantitative Finance 2018-09-20 Ludovico Latmiral

We consider general multi-species models of reaction diffusion processes and obtain a set of constraints on the rates which give rise to closed systems of equations for correlation functions. Our results are valid in any dimension and on…

Statistical Mechanics · Physics 2009-11-07 Vahid Karimipour

We show how Adjoint Algorithmic Differentiation (AAD) allows an extremely efficient calculation of correlation Risk of option prices computed with Monte Carlo simulations. A key point in the construction is the use of binning to…

Computational Finance · Quantitative Finance 2010-04-13 Luca Capriotti , Mike Giles

Many systems of interacting elements can be conceptualized as networks, where network nodes represent the elements and network ties represent interactions between the elements. In systems where the underlying network evolves in time, it is…

Methodology · Statistics 2015-05-05 Ian Barnett , Jukka-Pekka Onnela

We combine infinite-dimensional integration by parts procedures with a recursive relation on moments (reminiscent of a formula by Barbour (1986)), and deduce explicit expressions for cumulants of functionals of a general Gaussian field.…

Probability · Mathematics 2009-10-13 Ivan Nourdin , Giovanni Peccati