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Financial markets, being spectacular examples of complex systems, display rich correlation structures among price returns of different assets. The correlation structures change drastically, akin to phase transitions in physical phenomena,…

Statistical Finance · Quantitative Finance 2020-07-23 Anirban Chakraborti , Hrishidev , Kiran Sharma , Hirdesh K. Pharasi

We introduce an epistemic information measure between two data streams, that we term $influence$. Closely related to transfer entropy, the measure must be estimated by epistemic agents with finite memory resources via sampling accessible…

We prove a law of large numbers and a functional central limit theorem for multivariate Hawkes processes observed over a time interval $[0,T]$ in the limit $T \rightarrow \infty$. We further exhibit the asymptotic behaviour of the…

Probability · Mathematics 2012-02-07 Emmanuel Bacry , Sylvain Delattre , Marc Hoffmann , Jean François Muzy

To date, it is still impossible to sample the entire mammalian brain with single-neuron precision. This forces one to either use spikes (focusing on few neurons) or to use coarse-sampled activity (averaging over many neurons, e.g. LFP).…

Neurons and Cognition · Quantitative Biology 2022-12-12 Joao Pinheiro Neto , Franz Paul Spitzner , Viola Priesemann

Financial markets are a source of non-stationary multidimensional time series which has been drawing attention for decades. Each financial instrument has its specific changing-over-time properties, making its analysis a complex task. Hence,…

Machine Learning · Computer Science 2022-05-10 Artur Sokolovsky , Luca Arnaboldi , Jaume Bacardit , Thomas Gross

Stylized facts can be regarded as constraints for any modeling attempt of price dynamics on a financial market, in that an empirically reasonable model has to reproduce these stylized facts at least qualitatively. The dynamics of market…

Computational Finance · Quantitative Finance 2010-04-12 Stefan Reimann , Andreas Tupak

Oil price data have a complicated multi-scale structure that may vary with time. We use time-frequency analysis to identify the main features of these variations and, in particular, the regime shifts. The analysis is based on a…

Statistical Finance · Quantitative Finance 2019-05-01 Josselin Garnier , Knut Solna

In this paper, I proof that Importance Sampling estimates based on dependent sample sets are consistent under certain conditions. This can be used to reduce variance in Bayesian Models with factorizing likelihoods, using sample sets that…

Methodology · Statistics 2015-03-03 Ingmar Schuster

Sample selection improves the efficiency and effectiveness of machine learning models by providing informative and representative samples. Typically, samples can be modeled as a sample graph, where nodes are samples and edges represent…

Machine Learning · Computer Science 2025-03-04 Tianchi Xie , Jiangning Zhu , Guozu Ma , Minzhi Lin , Wei Chen , Weikai Yang , Shixia Liu

We develop new econometric methods for the comparison of nonparametric time trends. In many applications, practitioners are interested in whether the observed time series all have the same time trend. Moreover, they would often like to know…

Econometrics · Economics 2022-09-23 Marina Khismatullina , Michael Vogt

We introduce a new stochastic model for the variations of asset prices at the tick-by-tick level in dimension 1 (for a single asset) and 2 (for a pair of assets). The construction is based on marked point processes and relies on linear self…

Trading and Market Microstructure · Quantitative Finance 2015-03-17 E. Bacry , S. Delattre , M. Hoffmann , J. F. Muzy

Sampling considerations limit the experimental conditions under which information theoretic analyses of neurophysiological data yield reliable results. We develop a procedure for computing the full temporal entropy and information of…

Biological Physics · Physics 2009-11-06 Simon R. Schultz , Stefano Panzeri

A new method is introduced for analysis of interactions between time-dependent coupled oscillators, based on the signals they generate. It distinguishes unsynchronized dynamics from noise-induced phase slips, and enables the evolution of…

Data Analysis, Statistics and Probability · Physics 2012-08-09 Tomislav Stankovski , Andrea Duggento , Peter V. E. McClintock , Aneta Stefanovska

Time-varying volatility is an inherent feature of most economic time-series, which causes standard correlation estimators to be inconsistent. The quadrant correlation estimator is consistent but very inefficient. We propose a novel…

Econometrics · Economics 2023-11-01 Peter Reinhard Hansen , Yiyao Luo

The Empirical Mode Decomposition (EMD) provides a tool to characterize time series in terms of its implicit components oscillating at different time-scales. We apply this decomposition to intraday time series of the following three…

Computational Engineering, Finance, and Science · Computer Science 2018-04-04 Noemi Nava , T. Di Matteo , Tomaso Aste

According to the dominant view, time in perceptual decision making is used for integrating new sensory evidence. Based on a probabilistic framework, we investigated the alternative hypothesis that time is used for gradually refining an…

Neurons and Cognition · Quantitative Biology 2015-02-12 Máté Lengyel , Ádám Koblinger , Marjena Popović , József Fiser

In Financial Signal Processing, multiple time series such as financial indicators, stock prices and exchange rates are strongly coupled due to their dependence on the latent state of the market and therefore they are required to be jointly…

Statistical Finance · Quantitative Finance 2020-02-17 Taco de Wolff , Alejandro Cuevas , Felipe Tobar

In adaptive-bias enhanced sampling methods, a bias potential is added to the system to drive transitions between metastable states. The bias potential is a function of a few collective variables and is gradually modified according to the…

Computational Physics · Physics 2022-05-30 Michele Invernizzi , Michele Parrinello

The concept of time mostly plays a subordinate role in finance and economics. The assumption is that time flows continuously and that time series data should be analyzed at regular, equidistant intervals. Nonetheless, already nearly 60…

Statistical Finance · Quantitative Finance 2024-06-12 James B. Glattfelder , Richard B. Olsen

There is a consensus that human and non-human subjects experience temporal distortions in many stages of their perceptual and decision-making systems. Similarly, intertemporal choice research has shown that decision-makers undervalue future…

Neurons and Cognition · Quantitative Biology 2016-05-31 Pedro A. Ortega , Naftali Tishby