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The tick value is a crucial component of market design and is often considered the most suitable tool to mitigate the effects of high frequency trading. The goal of this paper is to demonstrate that the approach introduced in Dayri and…

Trading and Market Microstructure · Quantitative Finance 2015-07-28 Weibing Huang , Charles-Albert Lehalle , Mathieu Rosenbaum

The cross correlation matrix between equities comprises multiple interactions between traders with varying strategies and time horizons. In this paper, we use the Maximum Overlap Discrete Wavelet Transform to calculate correlation matrices…

Statistical Finance · Quantitative Finance 2010-01-05 Thomas Conlon , Heather J. Ruskin , Martin Crane

We discuss a weighted estimation of correlation and covariance matrices from historical financial data. To this end, we introduce a weighting scheme that accounts for similarity of previous market conditions to the present one. The…

Statistical Finance · Quantitative Finance 2010-07-01 Michael C. Münnix , Rudi Schäfer , Oliver Grothe

Extracting a proper dynamic network for modelling a time-dependent complex system is an important issue. Building a correct model is related to finding out critical time points where a system exhibits considerable change. In this work, we…

Social and Information Networks · Computer Science 2022-06-28 Günce Keziban Orman , Nadir Türe , Selim Balcisoy , Hasan Alp Boz

Given a dataset on actions and resulting long-term rewards, a direct estimation approach fits value functions that minimize prediction error on the training data. Temporal difference learning (TD) methods instead fit value functions by…

Machine Learning · Computer Science 2024-02-15 David Cheikhi , Daniel Russo

We provide a method that enables the simple calculation of the maximal correlation coefficient of a bivariate distribution, under suitable conditions. In particular, the method readily applies to known results on order statistics and…

Methodology · Statistics 2016-11-18 Nickos Papadatos , Tatiana Xifara

An increasing body of research focuses on using neural networks to model time series. A common assumption in training neural networks via maximum likelihood estimation on time series is that the errors across time steps are uncorrelated.…

Machine Learning · Computer Science 2021-10-12 Fan-Keng Sun , Christopher I. Lang , Duane S. Boning

We propose Predict then Interpolate (PI), a simple algorithm for learning correlations that are stable across environments. The algorithm follows from the intuition that when using a classifier trained on one environment to make predictions…

Machine Learning · Computer Science 2021-05-27 Yujia Bao , Shiyu Chang , Regina Barzilay

We study optimal liquidation in the presence of linear temporary and transient price impact along with taking into account a general price predicting finite-variation signal. We formulate this problem as minimization of a cost-risk…

Trading and Market Microstructure · Quantitative Finance 2022-01-17 Eyal Neuman , Moritz Voß

We consider the External Clock Synchronization problem in dynamic sensor networks. Initially, sensors obtain inaccurate estimations of an external time reference and subsequently collaborate in order to synchronize their internal clocks…

Distributed, Parallel, and Cluster Computing · Computer Science 2015-08-11 Ofer Feinerman , Amos Korman

We propose an approach to construct text-based time-series indices in an optimal way--typically, indices that maximize the contemporaneous relation or the predictive performance with respect to a target variable, such as inflation. We…

Econometrics · Economics 2024-05-20 David Ardia , Keven Bluteau

Criteria for identifying optimal adjustment sets yielding consistent estimation with minimal asymptotic variance of average treatment effects in parametric and nonparametric models have recently been established. In a single treatment time…

Statistics Theory · Mathematics 2025-10-06 David Adenyo , Mireille E Schnitzer , David Berger , Jason R Guertin , Denis Talbot

Entries of datasets are often collected only if an event occurred: taking a survey, enrolling in an experiment and so forth. However, such partial samples bias classical correlation estimators. Here we show how to correct for such sampling…

Methodology · Statistics 2016-01-05 P-A. G. Maugis

The quickest change detection problem is considered in the context of monitoring large-scale independent normal distributed data streams with possible changes in some of the means. It is assumed that for each individual local data stream,…

Statistics Theory · Mathematics 2016-03-18 Yuan Wang , Yajun Mei

The extremes of a stationary time series typically occur in clusters. A primary measure for this phenomenon is the extremal index, representing the reciprocal of the expected cluster size. Both a disjoint and a sliding blocks estimator for…

Statistics Theory · Mathematics 2017-07-14 Betina Berghaus , Axel Bücher

Mutual information is a nonlinear measure used in time series analysis in order to measure the linear and non-linear correlations at any lag $\tau$. The aim of this study is to evaluate some of the most commonly used mutual information…

Chaotic Dynamics · Physics 2008-09-15 A. Papana , D. Kugiumtzis

We develop and analyze algorithms for instrumental variable regression by viewing the problem as a conditional stochastic optimization problem. In the context of least-squares instrumental variable regression, our algorithms neither require…

Machine Learning · Statistics 2024-05-31 Xuxing Chen , Abhishek Roy , Yifan Hu , Krishnakumar Balasubramanian

Interval jitter and spike resampling methods are used to analyze the time scale on which temporal correlations occur. They allow the computation of jitter corrected cross correlograms and the performance of an associated statistically…

Neurons and Cognition · Quantitative Biology 2015-03-02 Daniel Jeck , Ernst Niebur

We revisit a model for time-varying linear regression that assumes the unknown parameters evolve according to a linear dynamical system. Counterintuitively, we show that when the underlying dynamics are stable the parameters of this model…

Statistics Theory · Mathematics 2022-01-03 Ali Jadbabaie , Horia Mania , Devavrat Shah , Suvrit Sra

In wave propagation theories, many problems of multi-sensor systems utilize time delay in their solution in signal processing. This technique finds great utility in seismic exploration and static correction (low-velocity weathering), which…

Computational Physics · Physics 2018-01-25 Ashraf H. Yahia , El-Sayed El-Dahshan , Albert K. Guirguis