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The drift burst hypothesis postulates the existence of short-lived locally explosive trends in the price paths of financial assets. The recent U.S. equity and treasury flash crashes can be viewed as two high-profile manifestations of such…

Econometrics · Economics 2026-01-16 Kim Christensen , Roel C. A. Oomen , Roberto Renò

It is well-known that random-coefficient AR(1) process can have long memory depending on the index $\beta$ of the tail distribution function of the random coefficient, if it is a regularly varying function at unity. We discuss estimation of…

Statistics Theory · Mathematics 2019-09-23 Remigijus Leipus , Anne Philippe , Vytaute Pilipauskaite , Donatas Surgailis

In this paper we report the existence of long-range memory in the opening moves of a chronologically ordered set of chess games using an extensive chess database. We used two mapping rules to build discrete time series and analyzed them…

Data Analysis, Statistics and Probability · Physics 2013-10-08 Ana L. Schaigorodsky , Juan I. Perotti , Orlando V. Billoni

In this paper, we show that the adaptive multidimensional increment ratio estimator of the long range memory parameter defined in Bardet and Dola (2012) satisfies a central limit theorem (CLT in the sequel) for a large semiparametric class…

Statistics Theory · Mathematics 2012-12-19 Jean-Marc Bardet , Béchir Dola

We study extremal statistics and return intervals in stationary long-range correlated sequences for which the underlying probability density function is bounded and uniform. The extremal statistics we consider e.g., maximum relative to…

Statistical Mechanics · Physics 2015-05-13 N. R. Moloney , J. Davidsen

We introduced simple microscopic non-Markovian walk models which describe underlying mechanism of anomalous diffusions. In the models, we considered the competitions between randomness and memory effects of previous history by introducing…

Statistical Mechanics · Physics 2015-06-19 Hyun-Joo Kim

Quantifying predictive uncertainty of deep semantic segmentation networks is essential in safety-critical tasks. In applications like autonomous driving, where video data is available, convolutional long short-term memory networks are…

Computer Vision and Pattern Recognition · Computer Science 2023-11-14 Laura Fieback , Bidya Dash , Jakob Spiegelberg , Hanno Gottschalk

Through the analysis of a dataset of ultra high frequency order book updates, we introduce a model which accommodates the empirical properties of the full order book together with the stylized facts of lower frequency financial data. To do…

Trading and Market Microstructure · Quantitative Finance 2014-09-05 Weibing Huang , Charles-Albert Lehalle , Mathieu Rosenbaum

We analyse large deviations of time-averaged quantities in stochastic processes with long-range memory, where the dynamics at time t depends itself on the value q_t of the time-averaged quantity. First we consider the elephant random walk…

Statistical Mechanics · Physics 2020-08-05 Robert L. Jack , Rosemary J. Harris

The standard LSTM, although it succeeds in the modeling long-range dependences, suffers from a highly complex structure that can be simplified through modifications to its gate units. This paper was to perform an empirical comparison…

Neural and Evolutionary Computing · Computer Science 2016-12-13 Yuzhen Lu

A theory of additive Markov chains with long-range memory, proposed earlier in Phys. Rev. E 68, 06117 (2003), is developed and used to describe statistical properties of long-range correlated systems. The convenient characteristics of such…

Data Analysis, Statistics and Probability · Physics 2009-11-11 S. S. Melnyk , O. V. Usatenko , V. A. Yampol'skii , S. S. Apostolov , Z. A. Mayzelis

In this work, we consider the case where a source with bursty traffic can adjust the transmission duration in order to increase the reliability. The source is equipped with a queue in order to store the arriving packets. We model the system…

Information Theory · Computer Science 2018-09-11 Nikolaos Pappas

Prediction of user traffic in cellular networks has attracted profound attention for improving resource utilization. In this paper, we study the problem of network traffic traffic prediction and classification by employing standard machine…

Networking and Internet Architecture · Computer Science 2019-06-04 Amin Azari , Panagiotis Papapetrou , Stojan Denic , Gunnar Peters

Intertemporal decision making involves choices among options whose effects occur at different moments. These choices are influenced not only by the effect of rewards value perception at different moments, but also by the time perception…

General Finance · Quantitative Finance 2011-05-19 Natalia Destefano , Alexandre Souto Martinez

We investigate large changes, bursts, of the continuous stochastic signals, when the exponent of multiplicativity is higher than one. Earlier we have proposed a general nonlinear stochastic model which can be transformed into Bessel process…

Statistical Finance · Quantitative Finance 2012-06-18 Vygintas Gontis , Aleksejus Kononovicius , Stefan Reimann

The limit order book (LOB) depicts the fine-grained demand and supply relationship for financial assets and is widely used in market microstructure studies. Nevertheless, the availability and high cost of LOB data restrict its wider…

Trading and Market Microstructure · Quantitative Finance 2021-07-02 Zijian Shi , John Cartlidge

We address microscopic, agent based, and macroscopic, stochastic, modeling of the financial markets combining it with the exogenous noise. The interplay between the endogenous dynamics of agents and the exogenous noise is the primary…

Statistical Finance · Quantitative Finance 2016-11-22 Vygintas Gontis

An important problem in time series analysis is the discrimination between non-stationarity and longrange dependence. Most of the literature considers the problem of testing specific parametric hypotheses of non-stationarity (such as a…

Statistics Theory · Mathematics 2016-07-19 Philip Preuß , Kemal Sen , Holger Dette

We propose generalized portmanteau-type test statistics in the frequency domain to test independence between two stationary time series. The test statistics are formed analogous to the one in Chen and Deo (2004, Econometric Theory 20,…

Statistics Theory · Mathematics 2008-10-14 Xiaofeng Shao

This paper presents empirical evidence using recently developed techniques in econophysics suggesting that the degree of long-range dependence in interest rates depends on the conduct of monetary policy. We study the term structure of…

Data Analysis, Statistics and Probability · Physics 2008-12-02 Daniel O. Cajueiro , Benjamin M. Tabak