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Related papers: Low-dimensional Cox-Ingersoll-Ross process

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Using the technique of moving domains, and classical direct stochastic calculus, we construct the Cox-Ingersoll-Ross process, as well as its square root, with additional skew reflection on a deterministic time dependent curve.

Probability · Mathematics 2010-05-14 Gerald Trutnau

In this paper, we establish a new connection between Cox-Ingersoll-Ross (CIR) and reflected Ornstein-Uhlenbeck (ROU) models driven by either a standard Wiener process or a fractional Brownian motion with $H>\frac{1}{2}$. We prove that, with…

Probability · Mathematics 2021-09-29 Yuliya Mishura , Anton Yurchenko-Tytarenko

This paper studies two related stochastic processes driven by Brownian motion: the Cox-Ingersoll-Ross (CIR) process and the Bessel process. We investigate their shared and distinct properties, focusing on time-asymptotic growth rates,…

Probability · Mathematics 2024-10-18 Yuliya Mishura , Kostiantyn Ralchenko , Svitlana Kushnirenko

In this paper, we consider a one-dimensional Cox-Ingersoll-Ross (CIR) process whose drift coefficient depends on unknown parameters. Considering the process discretely observed at high frequency, we prove the local asymptotic normality…

Statistics Theory · Mathematics 2020-06-26 Mohamed Ben Alaya , Ahmed Kebaier , Ngoc Khue Tran

We investigate pathwise uniqueness for the squared Bessel and Cox-Ingersoll-Ross processes with additional reflection term that is multiplied by some real number strictly between minus one and one. The reflection term is the symmetric local…

Probability · Mathematics 2011-06-10 Gerald Trutnau

Cox-Ingersoll-Ross (CIR) processes are extensively used in state-of-the-art models for the approximative pricing of financial derivatives. In particular, CIR processes are day after day employed to model instantaneous variances (squared…

Numerical Analysis · Mathematics 2021-11-02 Mario Hefter , Arnulf Jentzen

The drift sequential parameter estimation problems for the Cox-Ingersoll-Ross (CIR) processes under the limited duration of observation are studied. Truncated sequential estimation methods for both scalar and {two}-dimensional parameter…

Statistics Theory · Mathematics 2025-04-08 Mohamed Ben Alaya , Thi-Bao Trâm Ngô , Serguei Pergamenchtchikov

The Doss-Sussmann (DS) approach is used for uniform simulation of the Cox-Ingersoll-Ross (CIR) process. The DS formalism allows to express trajectories of the CIR process through solutions of some ordinary differential equation (ODE)…

Probability · Mathematics 2013-12-04 Grigori N. Milstein , John Schoenmakers

We investigate the long-time asymptotic behavior of various entropy measures associated with the Cox-Ingersoll-Ross (CIR) and squared Bessel processes. As the one-dimensional distributions of both processes follow noncentral chi-squared…

Probability · Mathematics 2025-07-22 Ivan Kucha , Yuliya Mishura , Kostiantyn Ralchenko

The Ray--Knight theorems show that the local time processes of various path fragments derived from a one-dimensional Brownian motion $B$ are squared Bessel processes of dimensions $0$, $2$, and $4$. It is also known that for various…

Probability · Mathematics 2018-04-23 Jim Pitman , Matthias Winkel

Cox-Ingersoll-Ross (CIR) processes are widely used in financial modeling such as in the Heston model for the approximative pricing of financial derivatives. Moreover, CIR processes are mathematically interesting due to the irregular square…

Numerical Analysis · Mathematics 2014-03-26 Martin Hutzenthaler , Arnulf Jentzen , Marco Noll

We consider the one-dimensional squared Bessel process given by the stochastic differential equation (SDE) \begin{align*} dX_t = 1\,dt + 2\sqrt{X_t}\,dW_t, \quad X_0=x_0, \quad t\in[0,1], \end{align*} and study strong (pathwise)…

Probability · Mathematics 2016-01-08 Mario Hefter , André Herzwurm

We analyze exponential integrability properties of the Cox-Ingersoll-Ross (CIR) process and its Euler discretizations with various types of truncation and reflection at 0. These properties play a key role in establishing the finiteness of…

Computational Finance · Quantitative Finance 2016-01-06 Andrei Cozma , Christoph Reisinger

In this paper the fractional Cox-Ingersoll-Ross process on $\mathbb{R}_+$ for $H<1/2$ is defined as a square of a pointwise limit of the processes $Y_{\varepsilon}$, satisfying the SDE of the form $d Y_{\varepsilon}(t)=( \frac{k}{…

Probability · Mathematics 2020-01-10 Yuliya Mishura , Anton Yurchenko-Tytarenko

We propose a change detection method for the famous Cox--Ingersoll--Ross model. This model is widely used in financial mathematics and therefore detecting a change in its parameters is of crucial importance. We develop one- and two-sided…

Statistics Theory · Mathematics 2015-02-26 Gyula Pap , Tamás T. Szabó

In this paper, we define a generalised fractional Cox-Ingersoll-Ross process as a square of singular stochastic differential equation with respect to fractional Brownian motion with Hurst parameter H in (0,1) and continuous drift function.…

Probability · Mathematics 2022-07-25 Marc Mukendi Mpanda , Safari Mukeru , Mmboniseni Mulaudzi

We prove precise almost sure lower path regularity results for a wide class of stochastic processes in all space dimensions $d\geq 1$. Examples include Gaussian processes, in particular, fractional Brownian motions with Hurst index $H\in…

Probability · Mathematics 2026-05-28 Michael Hinz , Jonas M. Tölle , Lauri Viitasaari

In this paper, we consider a one-dimensional jump-type Cox-Ingersoll-Ross process driven by a Brownian motion and a subordinator, whose growth rate is an unknown parameter. Considering the process observed continuously or discretely at high…

Probability · Mathematics 2025-02-11 Mohamed Ben Alaya , Ahmed Kebaier , Gyula Pap , Ngoc Khue Tran

In this paper we define the fractional Cox-Ingersoll-Ross process as $X_t:=Y_t^2\mathbf{1}_{\{t<\inf\{s>0:Y_s=0\}\}}$, where the process $Y=\{Y_t,t\ge0\}$ satisfies the SDE of the form…

Probability · Mathematics 2018-04-06 Yuliya Mishura , Anton Yurchenko-Tytarenko

For stochastic processes of non-commuting random variables we formulate a Cox-Ingersoll-Ross (CIR) stochastic differential equation in the context of free probability theory which was introduced by Voicelescu. By transforming the classical…

Probability · Mathematics 2021-04-27 Holger Fink , Henry Port , Georg Schlüchtermann
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