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Related papers: A partial rough path space for rough volatility

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We prove well-posedness and rough path stability of a class of linear and semi-linear rough PDE's on $\mathbb{R}^d$ using the variational approach. This includes well-posedness of (possibly degenerate) linear rough PDE's in…

Probability · Mathematics 2020-01-13 Peter Friz , Torstein Nilssen , Wilhelm Stannat

Using the weak convergence approach to large deviations, we formulate and prove the large deviation principle (LDP) for W-random graphs in the cut-norm topology. This generalizes the LDP for Erd\H{o}s-R{\' e}nyi random graphs by Chatterjee…

Probability · Mathematics 2021-08-17 Paul Dupuis , Georgi Medvedev

This work is to give the large deviation for a slow-fast system with level 3 random geometric rough path. Different from that driver rough path is of level 2, now the driver path comes from an anisotropic rough path that is lifted from the…

Probability · Mathematics 2025-09-24 Xiaoyu Yang , Yong Xu

In this paper, we introduce a new framework for parametrization schemes (PS) in GFD. Using the theory of controlled rough paths, we derive a class of rough geophysical fluid dynamics (RGFD) models as critical points of rough action…

Analysis of PDEs · Mathematics 2022-01-03 Dan Crisan , Darryl D. Holm , James-Michael Leahy , Torstein Nilssen

We provide an account for the existence and uniqueness of solutions to rough differential equations under the framework of controlled rough paths. The case when the driving path is $\beta$-H\"older continuous, for $\beta>1/3$, is widely…

Classical Analysis and ODEs · Mathematics 2020-09-29 Horatio Boedihardjo , Xi Geng

We study sample-path large deviations for L\'evy processes and random walks with heavy-tailed jump-size distributions that are of Weibull type. Our main results include an extended form of an LDP (large deviations principle) in the $J_1$…

Probability · Mathematics 2019-12-06 Mihail Bazhba , Jose Blanchet , Chang-Han Rhee , Bert Zwart

Using a combination of recurrent neural networks and signature methods from the rough paths theory we design efficient algorithms for solving parametric families of path dependent partial differential equations (PPDEs) that arise in pricing…

Computational Finance · Quantitative Finance 2020-11-24 Marc Sabate-Vidales , David Šiška , Lukasz Szpruch

Establishing a Large Deviation Principle (LDP) proves to be a powerful result for a vast number of stochastic models in many application areas of probability theory. The key object of an LDP is the large deviations rate function, from which…

Probability · Mathematics 2017-06-23 Ken R. Duffy , Brendan D. Williamson

Since T. Lyons invented rough path theory, one of its most successful applications is a new proof of Freidlin-Wentzell's large deviation principle for diffusion processes. In this paper we extend this method to the case of pinned diffusion…

Probability · Mathematics 2013-04-02 Yuzuru Inahama

In the spirit of Marcus canonical stochastic differential equations, we study a similar notion of rough differential equations (RDEs), notably dropping the assumption of continuity prevalent in the rough path literature. A new metric is…

Probability · Mathematics 2019-02-12 Ilya Chevyrev , Peter K. Friz

In this paper, we establish the theory of nonlinear rough paths. We give the definition of nonlinear rough paths, and develop the integrals. Then, we study differential equations driven by nonlinear rough paths. Afterwards, we compare the…

Probability · Mathematics 2019-04-29 David Nualart , Panqiu Xia

We prove two Large deviations principles (LDP) in the zone of moderate deviation probabilities. First we establish LDP for the conditional distributions of moderate deviations of empirical bootstrap measures given empirical probability…

Statistics Theory · Mathematics 2014-05-22 Mikhail Ermakov

We prove a sample path large deviation principle (LDP) with sub-linear speed for unbounded functionals of certain Markov chains induced by the Lindley recursion. The LDP holds in the Skorokhod space $\mathbb{D}[0,T]$ equipped with the…

Probability · Mathematics 2023-10-03 Mihail Bazhba , Jose Blanchet , Chang-Han Rhee , Bert Zwart

We consider rough stochastic volatility models where the driving noise of volatility has fractional scaling, in the "rough" regime of Hurst parameter $H < 1/2$. This regime recently attracted a lot of attention both from the statistical and…

Pricing of Securities · Quantitative Finance 2018-03-12 Christian Bayer , Peter K. Friz , Archil Gulisashvili , Blanka Horvath , Benjamin Stemper

Much work in the study of large deviations for random graph models is focused on the dense regime where the theory of graphons has emerged as a principal tool. These tools do not give a good approach to large deviation problems for random…

Probability · Mathematics 2020-07-07 Shankar Bhamidi , Amarjit Budhiraja , Paul Dupuis , Ruoyu Wu

This paper introduces the path derivatives, in the spirit of Dupire's functional It\^o calculus, for the controlled paths in the rough path theory with possibly non-geometric rough paths. The theory allows us to deal with rough integration…

Probability · Mathematics 2014-12-24 Christian Keller , Jianfeng Zhang

We prove the large deviations principle (LDP) for the law of the solutions to a class of semilinear stochastic partial differential equations driven by multiplicative noise. Our proof is based on the weak convergence approach and…

Probability · Mathematics 2016-07-05 Mohammud Foondun , Leila Setayeshgar

Rough volatility models are continuous time stochastic volatility models where the volatility process is driven by a fractional Brownian motion with the Hurst parameter smaller than half, and have attracted much attention since a seminal…

Statistics Theory · Mathematics 2019-05-20 Masaaki Fukasawa , Tetsuya Takabatake , Rebecca Westphal

We consider a fractional version of the Heston volatility model which is inspired by [16]. Within this model we treat portfolio optimization problems for power utility functions. Using a suitable representation of the fractional part,…

Portfolio Management · Quantitative Finance 2019-05-17 Nicole Bäuerle , Sascha Desmettre

The purpose of this article is to solve rough differential equations with the theory of regularity structures. These new tools recently developed by Martin Hairer for solving semi-linear partial differential stochastic equations were…

Probability · Mathematics 2019-10-15 Antoine Brault