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Hierarchical analysis is considered and a multilevel model is presented in order to explore causality, chance and complexity in financial economics. A coupled system of models is used to describe multilevel interactions, consistent with…

General Finance · Quantitative Finance 2020-02-04 Diane Wilcox , Tim Gebbie

The thesis is composed of three parts. Part I introduces the mathematical and statistical tools that are relevant for the study of dependences, as well as statistical tests of Goodness-of-fit for empirical probability distributions. I…

Statistical Finance · Quantitative Finance 2013-09-20 Rémy Chicheportiche

Models characterized by autoregressive structure and random coefficients are powerful tools for the analysis of high-frequency, high-dimensional and volatile time series. The available literature on such models is broad, but also sectorial,…

Methodology · Statistics 2020-09-18 Marta Regis , Paulo Serra , Edwin R. van den Heuvel

This is a review about financial dependencies which merges efforts in econophysics and financial economics during the last few years. We focus on the most relevant contributions to the analysis of asset markets' dependencies, especially…

Statistical Finance · Quantitative Finance 2023-02-17 M. Raddant , T. Di Matteo

Detailed study of multifractal characteristics of the financial time series of asset values and of its returns is performed using a collection of the high frequency Deutsche Aktienindex data. The tail index ($\alpha$), the Renyi exponents…

Statistical Mechanics · Physics 2009-11-07 A. Z. Gorski , S. Drozdz , J. Speth

We explore a stochastic model that enables capturing external influences in two specific ways. The model allows for the expression of uncertainty in the parametrisation of the stochastic dynamics and incorporates patterns to account for…

Pricing of Securities · Quantitative Finance 2024-04-11 Felix L. Wolf , Griselda Deelstra , Lech A. Grzelak

In complex systems, crucial parameters are often subject to unpredictable changes in time. Climate, biological evolution and networks provide numerous examples for such non-stationarities. In many cases, improved statistical models are…

Statistical Finance · Quantitative Finance 2015-12-09 Frederik Meudt , Martin Theissen , Rudi Schäfer , Thomas Guhr

The role of cryptocurrencies within the financial systems has been expanding rapidly in recent years among investors and institutions. It is therefore crucial to investigate the phenomena and develop statistical methods able to capture…

Applications · Statistics 2024-10-22 Beatrice Foroni , Luca Merlo , Lea Petrella

In the recent years a lot of attention is focused on unconventional string compactifications. A variety of different but related frameworks was developed in order to address issues such as duality invariance, non-geometry and…

High Energy Physics - Theory · Physics 2013-05-09 Athanasios Chatzistavrakidis , Larisa Jonke

We derive computationally tractable formulations of the robust counterparts of convex quadratic and conic quadratic constraints that are concave in matrix-valued uncertain parameters. We do this for a broad range of uncertainty sets. In…

Optimization and Control · Mathematics 2022-04-07 Ahmadreza Marandi , Aharon Ben-Tal , Dick den Hertog , Bertrand Melenberg

The simplest field theory description of the multivariate statistics of forward rate variations over time and maturities, involves a quadratic action containing a gradient squared rigidity term. However, this choice leads to a spurious kink…

Other Condensed Matter · Physics 2008-12-02 Belal Baaquie , Jean-Philippe Bouchaud

We analyze the spectral properties of correlation matrices between distinct statistical systems. Such matrices are intrinsically non symmetric, and lend themselves to extend the spectral analyses usually performed on standard Pearson…

Statistical Finance · Quantitative Finance 2012-06-29 Giacomo Livan , Luca Rebecchi

We study the dependence structure of market states by estimating empirical pairwise copulas of daily stock returns. We consider both original returns, which exhibit time-varying trends and volatilities, as well as locally normalized ones,…

Statistical Finance · Quantitative Finance 2015-09-30 Desislava Chetalova , Marcel Wollschläger , Rudi Schäfer

We set up a structural model to study credit risk for a portfolio containing several or many credit contracts. The model is based on a jump--diffusion process for the risk factors, i.e. for the company assets. We also include correlations…

Risk Management · Quantitative Finance 2008-12-02 Rudi Schäfer , Markus Sjölin , Andreas Sundin , Michal Wolanski , Thomas Guhr

We consider microstructure as an arbitrary contamination of the underlying latent securities price, through a Markov kernel $Q$. Special cases include additive error, rounding and combinations thereof. Our main result is that, subject to…

Statistical Finance · Quantitative Finance 2008-12-02 Yingying Li , Per A. Mykland

This paper investigates how two important sources of risk -- market tail risk and extreme market volatility risk -- are priced into the cross-section of asset returns across various investment horizons. To identify such risks, we propose a…

Pricing of Securities · Quantitative Finance 2021-12-13 Jozef Baruník , Matěj Nevrla

We review a collection of models of random simplicial complexes together with some of the most exciting phenomena related to them. We do not attempt to cover all existing models, but try to focus on those for which many important results…

Probability · Mathematics 2022-05-04 Omer Bobrowski , Dmitri Krioukov

Linear Recurrence Sequences (LRS) are a fundamental mathematical primitive for a plethora of applications such as the verification of probabilistic systems, model checking, computational biology, and economics. Positivity (are all terms of…

Logic in Computer Science · Computer Science 2023-07-14 Mihir Vahanwala

The study of mereology (parts and wholes) in the context of formal approaches to vagueness can be approached in a number of ways. In the context of rough sets, mereological concepts with a set-theoretic or valuation based ontology acquire…

Artificial Intelligence · Computer Science 2017-01-31 A. Mani

We discuss several aspects of creation of adequate mathematical models in other sciences. In particular, many difficulties stem from great complexity of the source systems and the presence of a variety of uncertain factors. We illustrate…

Optimization and Control · Mathematics 2021-02-19 I. V. Konnov
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