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This paper deals with an extension of the so-called Black-Scholes model in which the volatility is modeled by a linear combination of the components of the solution of a differential equation driven by a fractional Brownian motion of Hurst…

Probability · Mathematics 2016-08-30 Nicolas Marie

For a given centered Gaussian process with stationary increments $\{X(t), t\geq 0\}$ and $c>0$, let $$ W_\gamma(t)=X(t)-ct-\gamma\inf_{0\leq s\leq t}\left(X(s)-cs\right), \quad t\geq 0$$ denote the $\gamma$-reflected process, where…

Probability · Mathematics 2017-11-08 Krzysztof Debicki , Enkelejd Hashorva , Peng Liu

In this paper we establish limit theorems for power variations of stochastic processes controlled by fractional Brownian motions with Hurst parameter $H\leq 1/2$. We show that the power variations of such processes can be decomposed into…

Probability · Mathematics 2023-09-08 Yanghui Liu , Xiaohua Wang

We survey some new progress on the pricing models driven by fractional Brownian motion \cb{or} mixed fractional Brownian motion. In particular, we give results on arbitrage opportunities, hedging, and option pricing in these models. We…

Pricing of Securities · Quantitative Finance 2010-04-20 Christian Bender , Tommi Sottinen , Esko Valkeila

We study stationary fluctuations of conserved slow modes in a two-lane model of hardcore particles which are expected to show universal behaviour. Specifically, we focus on the properties of fluctuations at a special umbilic point where the…

Statistical Mechanics · Physics 2025-09-08 Johannes Schmidt , Žiga Krajnik , Vladislav Popkov

Max-stable processes have proved to be useful for the statistical modelling of spatial extremes. Several representations of max-stable random fields have been proposed in the literature. One such representation is based on a limit of…

Methodology · Statistics 2012-04-26 Richard A. Davis , Claudia Klüppelberg , Christina Steinkohl

Models for the microstructure evolution during hot rolling are reviewed. The basic macroscopic phenomena related to recrystallization are summarized. Constitutive models based on semi empirical equations are compared to more sophisticated…

Materials Science · Physics 2014-07-17 Jan Orend , Felix Hagemann , Frank Klose , Bengt Maas , Heinz Palkowski

The paper deals with the expected maxima of continuous Gaussian processes $X = (X_t)_{t\ge 0}$ that are H\"older continuous in $L_2$-norm and/or satisfy the opposite inequality for the $L_2$-norms of their increments. Examples of such…

Probability · Mathematics 2015-08-04 Konstantin Borovkov , Yuliya Mishura , Alexander Novikov , Mikhail Zhitlukhin

A well-known result with respect to the one dimensional nearest-neighbor symmetric simple exclusion process is the convergence to fractional Brownian motion with Hurst parameter 1/4, in the sense of finite-dimensional distributions, of the…

Probability · Mathematics 2007-11-02 Magda Peligrad , Sunder Sethuraman

For each $n\geq 1$, let $ {X_{in}, \quad i \geq 1} $ be independent copies of a nonnegative continuous stochastic process $X_{n}=(X_n(t))_{t\in T}$ indexed by a compact metric space $T$. We are interested in the process of partial maxima…

Probability · Mathematics 2011-10-07 Clément Dombry , Frédéric Eyi-Minko

This paper provides several statistical estimators for the drift and volatility parameters of an Ornstein-Uhlenbeck process driven by fractional Brownian motion, whose observations can be made either continuously or at discrete time…

Probability · Mathematics 2017-03-29 Yaozhong Hu , David Nualart , Hongjuan Zhou

We discuss joint temporal and contemporaneous aggregation of $N$ independent copies of AR(1) process with random-coefficient $a \in [0,1)$ when $N$ and time scale $n$ increase at different rate. Assuming that $a$ has a density, regularly…

Statistics Theory · Mathematics 2013-10-23 Vytaute Pilipauskaite , Donatas Surgailis

We consider the system of one-sided reflected Brownian motions which is in variational duality with Brownian last passage percolation. We show that it has integrable transition probabilities, expressed in terms of Hermite polynomials and…

Probability · Mathematics 2021-08-30 Mihai Nica , Jeremy Quastel , Daniel Remenik

In previous works, Bardina and Rovira (2023) constructed a family of processes that converge strongly towards Brownian motion, defined from renewal processes, are constructed. In this paper we prove that some of these processes can be…

Probability · Mathematics 2025-11-24 Xavier Bardina , Salim Boukfal , Marc Cano , Carles Rovira

This article presents a unified mathematical framework for modeling coupled poro-viscoelastic and thermo-viscoelastic phenomena, formulated as a system of first-order in time partial differential equations. The model describes the evolution…

Numerical Analysis · Mathematics 2025-04-29 Salim Meddahi

In this paper we provide a comprehensive analysis of a structural model for the dynamics of prices of assets traded in a market originally proposed in [1]. The model takes the form of an interacting generalization of the geometric Brownian…

Statistical Finance · Quantitative Finance 2018-06-06 Kartik Anand , Jonathan Khedair , Reimer Kuehn

We propose some class of statistics suitable for estimation of the Hurst index of the fractional Brownian motion based on the second order increments of an observed discrete trajectory.

Probability · Mathematics 2016-07-28 Kestutis Kubilius , Viktor Skorniakov

The scaling theory of irreversible aggregation is discussed in some detail. First, we review the general theory in the simplest case of binary reactions. We then extend consideration to ternary reactions, multispecies aggregation,…

Statistical Mechanics · Physics 2009-11-10 F. Leyvraz

We show that if a random variable is a final value of an adapted Holder continuous process, then it can be represented as a stochastic integral with respect to fractional Brownian motion, and the integrand is an adapted process, continuous…

Probability · Mathematics 2014-03-11 Georgiy Shevchenko , Lauri Viitasaari

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