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A simple method is proposed to estimate the instantaneous correlations between state variables in a hybrid system from the empirical correlations between observable market quantities such as spot rate, stock price and implied volatility.…

Computational Finance · Quantitative Finance 2023-07-10 Baron Law

We study the time dependent cross correlations of stock returns, i.e. we measure the correlation as the function of the time shift between pairs of stock return time series using tick-by-tick data. We find a weak but significant effect…

Statistical Mechanics · Physics 2009-11-07 L. Kullmann , J. Kertesz , K. Kaski

The estimation of the correlation between time series is often hampered by the asynchronicity of the signals. Cumulating data within a time window suppresses this source of noise but weakens the statistics. We present a method to estimate…

Data Analysis, Statistics and Probability · Physics 2009-02-18 Bence Toth , Janos Kertesz

We present a theorem concerning the invariance of cross-correlation peak positions, which provides a foundation for a new method for time difference estimation that is potentially faster than the conventional fast Fourier transform (FFT)…

Signal Processing · Electrical Eng. & Systems 2025-09-25 Natsuki Ueno , Ryotaro Sato , Nobutaka Ono

We consider the problem of efficient statistical inference for comparing two regression curves estimated from two samples of dependent measurements. Based on a representation of the best pair of linear unbiased estimators in continuous time…

Methodology · Statistics 2016-01-29 Holger Dette , Kirsten Schorning , Maria Konstantinou

The usage of a spot volatility estimate based on a volatility decomposition in a time-changed price-model according to the trading times is investigated. In this model clock-time volatility splits up into the product of tick-time volatility…

Probability · Mathematics 2016-05-10 Rainer Dahlhaus , Sophon Tunyavetchakit

Statistical static timing analysis deals with the increasing variations in manufacturing processes to reduce the pessimism in the worst case timing analysis. Because of the correlation between delays of circuit components, timing model…

Hardware Architecture · Computer Science 2017-05-16 Bing Li , Ning Chen , Manuel Schmidt , Walter Schneider , Ulf Schlichtmann

Besides the well-known effect of autocorrelations in time series of Monte Carlo simulation data resulting from the underlying Markov process, using the same data pool for computing various estimates entails additional cross correlations.…

Statistical Mechanics · Physics 2014-11-20 Martin Weigel , Wolfhard Janke

On a high-frequency scale the time series are not homogeneous, therefore standard correlation measures can not be directly applied to the raw data. There are two ways to deal with this problem. The time series can be homogenised through an…

Statistical Mechanics · Physics 2016-08-31 Ovidiu Precup , Giulia Iori

We consider the problem of designing experiments for the comparison of two regression curves describing the relation between a predictor and a response in two groups, where the data between and within the group may be dependent. In order to…

Statistics Theory · Mathematics 2021-01-15 Kirsten Schorning , Holger Dette

We define two minimum distance estimators for dependent data by minimizing some approximated Maximum Mean Discrepancy distances between the true empirical distribution of observations and their assumed (parametric) model distribution. When…

Methodology · Statistics 2026-01-19 Pierre Alquier , Jean-David Fermanian , Benjamin Poignard

This paper proposes a flexible framework for inferring large-scale time-varying and time-lagged correlation networks from multivariate or high-dimensional non-stationary time series with piecewise smooth trends. Built on a novel and unified…

Methodology · Statistics 2023-02-13 Lujia Bai , Weichi Wu

We study some of the most commonly used mutual information estimators, based on histograms of fixed or adaptive bin size, $k$-nearest neighbors and kernels, and focus on optimal selection of their free parameters. We examine the consistency…

Data Analysis, Statistics and Probability · Physics 2015-05-13 Angeliki Papana , Dimitris Kugiumtzis

Financial markets are highly correlated systems that reveal both the inter-market dependencies and the correlations among their different components. Standard analyzing techniques include correlation coefficients for pairs of signals and…

Physics and Society · Physics 2008-12-02 J. Kwapien , S. Drozdz , A. Z. Gorski , P. Oswiecimka

Time-varying volatility is an inherent feature of most economic time-series, which causes standard correlation estimators to be inconsistent. The quadrant correlation estimator is consistent but very inefficient. We propose a novel…

Econometrics · Economics 2023-11-01 Peter Reinhard Hansen , Yiyao Luo

Measuring the topological overlap of two graphs becomes important when assessing the changes between temporally adjacent graphs in a time-evolving network. Current methods depend on the fraction of nodes that have persisting edges. This…

Physics and Society · Physics 2014-03-06 Fiona Pigott , Mauricio Rene Herrera Marin

Precise estimation of cross-correlation or similarity between two random variables lies at the heart of signal detection, hyperdimensional computing, associative memories, and neural networks. Although a vast literature exists on different…

Machine Learning · Computer Science 2023-11-02 Zhili Xiao , Shantanu Chakrabartty

We focus on estimating the integrated covariance of log-price processes in the presence of market microstructure noise. We construct an efficient unbiased estimator for the quadratic covariation of two It\^{o} processes in the case where…

Statistics Theory · Mathematics 2008-12-19 Markus Bibinger

Correlation coefficient is usually used to measure the correlation degree between two time signals. However, its performance will drop or even fail if the signals are noised. Based on the time-frequency phase spectrum (TFPS) provided by…

Signal Processing · Electrical Eng. & Systems 2020-05-07 Zhen Sun , Guocheng Wang , Xiaoqing Su , Xinghui Liang , Lintao Liu

We measure the influence of different time-scales on the dynamics of financial market data. This is obtained by decomposing financial time series into simple oscillations associated with distinct time-scales. We propose two new time-varying…

Statistical Finance · Quantitative Finance 2016-11-23 Noemi Nava , Tiziana Di Matteo , Tomaso Aste
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