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The paper focuses on the Vasicek model driven by a tempered fractional Brownian motion. We derive the asymptotic distributions of the least-squares estimators (based on continuous-time observations) for the unknown drift parameters. This…

Statistics Theory · Mathematics 2024-06-06 Yuliya Mishura , Kostiantyn Ralchenko , Olena Dehtiar

Let $B=\{(B_{t}^{1},..., B_{t}^{d}), t\geq 0\}$ be a $d$-dimensional fractional Brownian motion with Hurst parameter $H$ and let $R_{t}=% \sqrt{(B_{t}^{1})^{2}+... +(B_{t}^{d})^{2}}$ be the fractional Bessel process. It\^{o}'s formula for…

Probability · Mathematics 2007-05-23 Yaozhong Hu , David Nualart

We consider stochastic differential equation involving pathwise integral with respect to fractional Brownian motion. The estimates for the Hurst parameter are constructed according to first- and second-order quadratic variations of observed…

Probability · Mathematics 2012-06-28 K. Kubilius , Y. Mishura

It is well known that Brownian motion enjoys several distributional invariances such as the scaling property and the time reversal. In this paper, we prove another invariance of Brownian motion that is compatible with the time reversal. The…

Probability · Mathematics 2023-10-20 Yuu Hariya

For $0<\alpha \leq 2$ and $0<H<1$, an $\alpha$-time fractional Brownian motion is an iterated process $Z = \{Z(t)=W(Y(t)), t \ge 0\}$ obtained by taking a fractional Brownian motion $\{W(t), t\in \RR{R} \}$ with Hurst index $0<H<1$ and…

Probability · Mathematics 2011-02-11 Erkan Nane , Dongsheng Wu , Yimin Xiao

We present a general method for constructing stochastic processes with prescribed local form. Such processes include variable amplitude multifractional Brownian motion, multifractional $\alpha$-stable processes, and multistable processes,…

Probability · Mathematics 2008-02-06 K. J. Falconer , J. Levy Vehel

Brownian motions in the infinite-dimensional group of all unitary operators are studied under strong continuity assumption rather than norm continuity. Every such motion can be described in terms of a countable collection of independent…

Probability · Mathematics 2007-05-23 Boris Tsirelson

An innovative extension of Geometric Brownian Motion model is developed by incorporating a weighting factor and a stochastic function modelled as a mixture of power and trigonometric functions. Simulations based on this Modified Brownian…

Pricing of Securities · Quantitative Finance 2015-07-09 Gurjeet Dhesi , Muhammad Bilal Shakeel , Ling Xiao

A functional limit theorem for the empirical measure-valued process of eigenvalues of a matrix fractional Brownian motion is obtained. It is shown that the limiting measure-valued process is the non-commutative fractional Brownian motion…

Probability · Mathematics 2015-06-23 Juan Carlos Pardo , Victor Pérez-Abreu , José Luis Pérez-Garmendia

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

We briefly go through the problem of the quantum description of Brownian motion, concentrating on recent results about the connection between dynamics of the particle and dynamic structure factor of the medium.

Quantum Physics · Physics 2015-06-26 Bassano Vacchini

Our purpose is to investigate properties for processes with stationary and independent increments under $G$-expectation. As applications, we prove the martingale characterization to $G$-Brownian motion and present a decomposition for…

Probability · Mathematics 2011-09-09 Yongsheng Song

In this paper, we study the numerical schemes for the two-dimensional Fokker-Planck equation governing the probability density function of the tempered fractional Brownian motion. The main challenges of the numerical schemes come from the…

Numerical Analysis · Mathematics 2020-08-12 Xing Liu , Weihua Deng

If we compose a smooth function g with fractional Brownian motion B with Hurst index H > 1/2, then the resulting change of variables formula [or It/^o- formula] has the same form as if fractional Brownian motion would be a continuous…

Probability · Mathematics 2011-11-11 Ehsan Azmoodeh , Heikki Tikanmäki , Esko Valkeila

We characterize the asymptotic behaviour of the weighted power variation processes associated with iterated Brownian motion. We prove weak convergence results in the sense of finite dimensional distributions, and show that the laws of the…

Probability · Mathematics 2008-06-15 Ivan Nourdin , Giovanni Peccati

We propose a bivariate model for a pair of dependent unit vectors which is generated by Brownian motion. Both marginals have uniform distributions on the sphere, while the conditionals follow so-called ``exit'' distributions. Some…

Statistics Theory · Mathematics 2009-09-08 Shogo Kato

We implement Bayesian model selection and parameter estimation for the case of fractional Brownian motion with measurement noise and a constant drift. The approach is tested on artificial trajectories and shown to make estimates that match…

Data Analysis, Statistics and Probability · Physics 2018-04-05 Jens Krog , Lars H. Jacobsen , Frederik W. Lund , Daniel Wüstner , Michael A. Lomholt

In this paper, we consider the drawdown and drawup of the fractional Brownian motion with trend, which corresponds to the logarithm of geometric fractional Brownian motion representing the stock price in financial market. We derive the…

Probability · Mathematics 2018-02-01 Long Bai , Peng Liu

We consider a stochastic differential equation involving standard and fractional Brownian motion with unknown drift parameter to be estimated. We investigate the standard maximum likelihood estimate of the drift parameter, two non-standard…

Probability · Mathematics 2011-12-13 Yuriy Kozachenko , Alexander Melnikov , Yuliya Mishura

We prove limit theorems for the weighted quadratic variation of trifractional Brownian motion and $n$-th order fractional Brownian motion. Furthermore, a sufficient condition for the $L^P$-convergence of the weighted quadratic variation for…

Probability · Mathematics 2021-05-07 Xiyue Han