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Related papers: Fractional Cox--Ingersoll--Ross process with small…

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The paper suggests a way of stochastic integration of random integrands with respect to fractional Brownian motion with the Hurst parameter H> 1/2. The integral is defined initially on the processes that are "piecewise" predictable on a…

Probability · Mathematics 2020-04-21 Nikolai Dokuchaev

Cox-Ingersoll-Ross (CIR) processes are widely used in financial modeling such as in the Heston model for the approximative pricing of financial derivatives. Moreover, CIR processes are mathematically interesting due to the irregular square…

Numerical Analysis · Mathematics 2014-03-26 Martin Hutzenthaler , Arnulf Jentzen , Marco Noll

We study convergence properties of the full truncation Euler scheme for the Cox-Ingersoll-Ross process in the regime where the boundary point zero is inaccessible. Under some conditions on the model parameters (precisely, when the Feller…

Computational Finance · Quantitative Finance 2018-10-09 Andrei Cozma , Christoph Reisinger

This paper studies two related stochastic processes driven by Brownian motion: the Cox-Ingersoll-Ross (CIR) process and the Bessel process. We investigate their shared and distinct properties, focusing on time-asymptotic growth rates,…

Probability · Mathematics 2024-10-18 Yuliya Mishura , Kostiantyn Ralchenko , Svitlana Kushnirenko

In this article, we study a numerical scheme for stochastic differential equations driven by fractional Brownian motion with Hurst parameter H in (1/4; 1/2). Towards this end, we apply Doss-Sussmann representation of the solution and an…

Probability · Mathematics 2019-04-08 H. Araya , J. A. León , S. Torres

We show by explicit closed form calculations that a Hurst exponent H that is not 1/2 does not necessarily imply long time correlations like those found in fractional Brownian motion. We construct a large set of scaling solutions of…

Statistical Mechanics · Physics 2009-11-11 Kevin E. Bassler , Gemunu H. Gunaratne , Joseph L. McCauley

We find an explicit expression for the cross-covariance between stochastic integral processes with respect to a $d$-dimensional fractional Brownian motion (fBm) $B_t$ with Hurst parameter $H>1/2$, where the integrands are vector fields…

Probability · Mathematics 2016-12-16 Yohaï Maayan , Eddy Mayer-Wolf

In this paper, we investigate the optimal strong convergence rate of numerical approximations for the Cox--Ingersoll--Ross model driven by fractional Brownian motion with Hurst parameter $H\in(1/2,1)$. To deal with the difficulties caused…

Numerical Analysis · Mathematics 2020-04-17 Jialin Hong , Chuying Huang , Minoo Kamrani , Xu Wang

We study the estimation of a stable Cox-Ingersoll-Ross model, which is a special subcritical continuous-state branching process with immigration. The process is characterized in terms of some stochastic equations. The exponential ergodicity…

Probability · Mathematics 2013-01-16 Zenghu Li , Chunhua Ma

We consider a stochastic differential equation of the form $dr_t = (a - b r_t) dt + \sigma\sqrt{r_t}dW_t$, where $a$, $b$ and $\sigma$ are positive constants. The solution corresponds to the Cox-Ingersoll-Ross process. We study the…

Probability · Mathematics 2020-05-12 Olena Dehtiar , Yuliya Mishura , Kostiantyn Ralchenko

A family of log-correlated Gaussian processes indexed by metric spaces is introduced, when the metric is conditionally negative definite. These processes arise as the limit of bi-fractional Brownian motions indexed by $(H,K)$ scaled by…

Probability · Mathematics 2025-09-30 Yizao Wang

We introduce fractional diffusion Bessel process with Hurst index $H\in(0,\frac12)$, derive a stochastic differential equation for it, and study the asymptotic properties of its sample paths.

Probability · Mathematics 2023-04-14 Yuliya Mishura , Kostiantyn Ralchenko

Cox-Ingersoll-Ross (CIR) processes are extensively used in state-of-the-art models for the approximative pricing of financial derivatives. In particular, CIR processes are day after day employed to model instantaneous variances (squared…

Numerical Analysis · Mathematics 2021-11-02 Mario Hefter , Arnulf Jentzen

For rescaled additive functionals of the sine-process, upper bounds are obtained for their speed of convergence to the Gaussian distribution with respect to the Kolmogorov-Smirnov metric. Under scaling with coefficient $R$ the…

Probability · Mathematics 2024-12-31 Alexander I. Bufetov

Fractional Poisson processes, a rapidly growing area of non-Markovian stochastic processes, are useful in statistics to describe data from counting processes when waiting times are not exponentially distributed. We show that the fractional…

Classical Analysis and ODEs · Mathematics 2013-10-14 Markus Kreer , Ayse Kizilersu , Anthony W. Thomas

In this paper, we consider the Cox--Ingersoll--Ross (CIR) process in the regime where the process does not hit zero. We construct additive and multiplicative discrete approximation schemes for the price of asset that is modeled by the CIR…

Probability · Mathematics 2016-04-07 Yuliia Mishura , Yevheniia Munchak

The process $(G_t)_{t\in[0,T]}$ is referred to as a fractional Gaussian process if the first-order partial derivative of the difference between its covariance function and that of the fractional Brownian motion $(B^H_t)_{t\in[0,T ]}$ is a…

Probability · Mathematics 2023-09-20 Yong Chen , Ying Li

The Doss-Sussmann (DS) approach is used for uniform simulation of the Cox-Ingersoll-Ross (CIR) process. The DS formalism allows to express trajectories of the CIR process through solutions of some ordinary differential equation (ODE)…

Probability · Mathematics 2013-12-04 Grigori N. Milstein , John Schoenmakers

Let R be a symmetric a-stable Riemann-Liouville process with Hurst parameter H > 0. Consider ||.|| a translation invariant, b-self-similar, and p-pseudo-additive functional semi-norm. We show that if H > (b + 1/p) and c = (H - b - 1/p),…

Probability · Mathematics 2015-06-26 Mikhail. A. Lifshits , Thomas Simon

We consider inference of the parameters of the diffusion term for Cox-Ingersoll-Ross and similar processes with a power type dependence of the diffusion coefficient from the underlying process. We suggest some original pathwise estimates…

Probability · Mathematics 2017-04-12 Nikolai Dokuchaev