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In this work we investigate the generic properties of a stochastic linear model in the regime of high-dimensionality. We consider in particular the Vector AutoRegressive model (VAR) and the multivariate Hawkes process. We analyze both…

Statistical Mechanics · Physics 2015-06-11 Iacopo Mastromatteo , Emmanuel Bacry , Jean-François Muzy

The vast majority of market impact studies assess each product individually, and the interactions between the different order flows are disregarded. This strong approximation may lead to an underestimation of trading costs and possible…

Trading and Market Microstructure · Quantitative Finance 2017-03-08 Michael Benzaquen , Iacopo Mastromatteo , Zoltan Eisler , Jean-Philippe Bouchaud

We propose an extension to Hawkes processes by treating the levels of self-excitation as a stochastic differential equation. Our new point process allows better approximation in application domains where events and intensities accelerate…

Machine Learning · Computer Science 2016-09-23 Young Lee , Kar Wai Lim , Cheng Soon Ong

Market information events are generated intermittently and disseminated at high speeds in real-time. Market participants consume this high-frequency data to build limit order books, representing the current bids and offers for a given…

Trading and Market Microstructure · Quantitative Finance 2024-08-08 Aditya Nittur Anantha , Shashi Jain

We advance market-making strategies by integrating Adversarial Reinforcement Learning (ARL), Hawkes Processes, and variable volatility levels while also expanding the action space available to market makers (MMs). To enhance the…

Trading and Market Microstructure · Quantitative Finance 2025-08-26 Ziyi Wang , Carmine Ventre , Maria Polukarov

Fueled in part by recent applications in neuroscience, the multivariate Hawkes process has become a popular tool for modeling the network of interactions among high-dimensional point process data. While evaluating the uncertainty of the…

Machine Learning · Statistics 2020-07-16 Xu Wang , Mladen Kolar , Ali Shojaie

This paper introduces graph-based mutually exciting processes (GB-MEP) to model event times in network point processes, focusing on an application to docked bike-sharing systems. GB-MEP incorporates known relationships between nodes in a…

Applications · Statistics 2024-03-11 Francesco Sanna Passino , Yining Che , Carlos Cardoso Correia Perello

An extension of the Hawkes process, the Marked Hawkes process distinguishes itself by featuring variable jump size across each event, in contrast to the constant jump size observed in a Hawkes process without marks. While extensive…

Machine Learning · Statistics 2024-02-08 Sobin Joseph , Shashi Jain

Two kinetic exchange models are proposed to explore the dynamics of closed economic markets characterized by random exchanges, saving propensities, and collective transactions. Model I simulates a system where individual transactions occur…

Cellular Automata and Lattice Gases · Physics 2025-02-20 Chuandong Lin , Lijie Cui

We take a new look at the problem of disentangling the volatility and jumps processes of daily stock returns. We first provide a computational framework for the univariate stochastic volatility model with Poisson-driven jumps that offers a…

Statistical Finance · Quantitative Finance 2021-04-30 Angelos Alexopoulos , Petros Dellaportas , Omiros Papaspiliopoulos

We propose a novel class of network models for temporal dyadic interaction data. Our goal is to capture a number of important features often observed in social interactions: sparsity, degree heterogeneity, community structure and…

Machine Learning · Statistics 2018-10-30 Xenia Miscouridou , François Caron , Yee Whye Teh

This article considers a model for alternative processes for securities prices and compares this model with actual return data of several securities. The distributions of returns that appear in the model can be Gaussian as well as…

Adaptation and Self-Organizing Systems · Physics 2008-12-02 Kyrylo Shmatov , Mikhail Smirnov

Fluctuations in stock prices are influenced by a complex interplay of factors that go beyond mere historical data. These factors, themselves influenced by external forces, encompass inter-stock dynamics, broader economic factors, various…

Statistical Finance · Quantitative Finance 2026-02-12 Ambedkar Dukkipati , Kawin Mayilvaghanan , Naveen Kumar Pallekonda , Sai Prakash Hadnoor , Ranga Shaarad Ayyagari

Abstract. Most of the real world data we encounter are asynchronous event sequence, so the last decades have been characterized by the implementation of various point process into the field of social networks,electronic medical records and…

Machine Learning · Computer Science 2021-12-28 Zhi-yan Song , Jian-wei Liu , Lu-ning Zhang , Ya-nan Han

The concept of temporal networks provides a framework to understand how the interaction between system components changes over time. In empirical communication data, we often detect non-Poissonian, so-called bursty behavior in the activity…

Physics and Society · Physics 2020-04-29 Takayuki Hiraoka , Naoki Masuda , Aming Li , Hang-Hyun Jo

When an item goes out of stock, sales transaction data no longer reflect the original customer demand, since some customers leave with no purchase while others substitute alternative products for the one that was out of stock. Here we…

Applications · Statistics 2016-01-15 Benjamin Letham , Lydia M. Letham , Cynthia Rudin

Point processes are widely used statistical models for continuous-time discrete event data, such as medical records, crime reports, and social network interactions, to capture the influence of historical events on future occurrences. In…

Machine Learning · Statistics 2026-01-13 Xiuyuan Cheng , Tingnan Gong , Yao Xie

Hawkes processes are a popular framework to model the occurrence of sequential events, i.e., occurrence dynamics, in several fields such as social diffusion. In real-world scenarios, the inter-arrival time among events is irregular.…

Machine Learning · Computer Science 2023-05-19 Minju Jo , Seungji Kook , Noseong Park

Across a wide variety of applications, the self-exciting Hawkes process has been used to model phenomena in which the history of events influences future occurrences. However, there may be many situations in which the past events only…

Probability · Mathematics 2021-01-12 Andrew Daw , Jamol Pender

Hawkes process provides an effective statistical framework for analyzing the time-dependent interaction of neuronal spiking activities. Although utilized in many real applications, the classic Hawkes process is incapable of modelling…

Machine Learning · Statistics 2021-02-23 Feng Zhou , Yixuan Zhang , Jun Zhu