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An elementary approach to characterizing the impact of noise scheduling and time discretization in generative diffusion models is developed. We first utilize the Cram\'er-Rao bound to identify the Gaussian setting as a fundamental…

Information Theory · Computer Science 2026-02-10 Qiang Sun , H. Vincent Poor , Wenyi Zhang

We present a brief overview of random matrix theory (RMT) with the objectives of highlighting the computational results and applications in financial markets as complex systems. An oft-encountered problem in computational finance is the…

Statistical Finance · Quantitative Finance 2018-09-27 Hirdesh K. Pharasi , Kiran Sharma , Anirban Chakraborti , Thomas H. Seligman

We propose and study a simple stochastic model for the dynamics of a limit order book, in which arrivals of market order, limit orders and order cancellations are described in terms of a Markovian queueing system. Through its analytical…

Trading and Market Microstructure · Quantitative Finance 2015-03-19 Rama Cont , Adrien De Larrard

Through the analysis of a dataset of ultra high frequency order book updates, we introduce a model which accommodates the empirical properties of the full order book together with the stylized facts of lower frequency financial data. To do…

Trading and Market Microstructure · Quantitative Finance 2014-09-05 Weibing Huang , Charles-Albert Lehalle , Mathieu Rosenbaum

We use a continuous-time random walk (CTRW) to model market fluctuation data from times when traders experience excessive losses or excessive profits. We analytically derive "superstatistics" that accurately model empirical market activity…

Statistical Finance · Quantitative Finance 2016-10-12 Mateusz Denys , Maciej Jagielski , Tomasz Gubiec , Ryszard Kutner , H. Eugene Stanley

Computable estimates for the error of finite element discretisations of parabolic problems in the $L^\infty(0,T; L^2)$ norm are developed, which exhibit constant effectivities (the ratio of the estimated error to the true error) with…

Numerical Analysis · Mathematics 2018-03-09 Oliver J. Sutton

By combining (i) the economic theory of rational expectation bubbles, (ii) behavioral finance on imitation and herding of investors and traders and (iii) the mathematical and statistical physics of bifurcations and phase transitions, the…

General Finance · Quantitative Finance 2010-02-07 Wanfeng Yan , Ryan Woodard , Didier Sornette

We propose a novel distributionally robust $Q$-learning algorithm for the non-tabular case accounting for continuous state spaces where the state transition of the underlying Markov decision process is subject to model uncertainty. The…

Machine Learning · Computer Science 2025-05-27 Chung I Lu , Julian Sester , Aijia Zhang

We study the distributions of money in a simple closed economic system for different types of monetary transactions. We know that for arbitrary and random sharing but locally conserving money transactions, the money distribution goes to the…

Statistical Mechanics · Physics 2009-11-07 Anirban Chakraborti

In offline reinforcement learning, in-sample learning methods have been widely used to prevent performance degradation caused by evaluating out-of-distribution actions from the dataset. Extreme Q-learning (XQL) employs a loss function based…

Machine Learning · Computer Science 2025-02-12 Motoki Omura , Takayuki Osa , Yusuke Mukuta , Tatsuya Harada

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

From the data analysis we defined distribution function against the population on the level of various structure units, namely regions, federal districts and the country on the whole. We have studied peculiarities of the distribution…

Physics and Society · Physics 2008-06-12 B. R. Gadjiev , M. A. Korolev , T. B. Progulova

It is demonstrated how to generate time series with tailored nonlinearities by inducing well- defined constraints on the Fourier phases. Correlations between the phase information of adjacent phases and (static and dynamic) measures of…

Chaotic Dynamics · Physics 2015-10-21 C. Raeth , I. Laut

One of the first steps to understand and forecast economic downturns is identifying their frequency distribution, but it remains uncertain. This problem is common in phenomena displaying power-law-like distributions. Power laws play a…

Adaptation and Self-Organizing Systems · Physics 2013-10-10 Salvador Pueyo

This paper introduces nonparametric econometric methods that characterize general power law distributions under basic stability conditions. These methods extend the literature on power laws in the social sciences in several directions.…

Economics · Quantitative Finance 2016-06-07 Ricardo T. Fernholz

We study instrumental-variable designs where policy reforms strongly shift the distribution of an endogenous variable but only weakly move its mean. We formalize this by introducing distributional relevance: instruments may be purely…

Econometrics · Economics 2026-02-12 Rowan Cherodian , Guy Tchuente

We systematically compare Quantum Liang Information Flow (QLIF) a recently proposed causal information measure with the out-of-time-order correlator (OTOC) as diagnostics of quantum chaos in the one-dimensional mixed-field Ising chain.…

Quantum Physics · Physics 2026-03-17 Bin Yi

We briefly review data analysis of the Island order book, part of NASDAQ, which suggests a framework to which all limit order markets should comply. Using a simple exclusion particle model, we argue that short-time price over-diffusion in…

Statistical Mechanics · Physics 2009-11-07 Damien Challet , Robin Stinchcombe

Scale-free networks constitute a fast-developing field that has already provided us with important tools to understand natural and social phenomena. From biological systems to environmental modifications, from quantum fields to high energy…

General Physics · Physics 2021-06-17 Airton Deppman , Evandro Oliveira Andrade Segundo

Strong anomalous diffusion is {often} characterized by a piecewise-linear spectrum of the moments of displacement. The spectrum is characterized by slopes $\xi$ and $\zeta$ for small and large moments, respectively, and by the critical…