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Dynamics of information flow in adaptively interacting stochastic processes is studied. We give an extended form of game dynamics for Markovian processes and study its behavior to observe information flow through the system. Examples of the…

Adaptation and Self-Organizing Systems · Physics 2007-05-23 Yuzuru Sato , Nihat Ay

Traditionally, Hawkes processes are used to model time--continuous point processes with history dependence. Here we propose an extended model where the self--effects are of both excitatory and inhibitory type and follow a Gaussian Process.…

Machine Learning · Statistics 2021-05-21 Noa Malem-Shinitski , Cesar Ojeda , Manfred Opper

We introduce a Markov-functional approach to construct local volatility models that are calibrated to a discrete set of marginal distributions. The method is inspired by and extends the volatility interpolation of Bass (1983) and Conze and…

Computational Finance · Quantitative Finance 2024-11-25 ShengQuan Zhou

We introduce a multivariate Hawkes process with constraints on its conditional density. It is a multivariate point process with conditional intensity similar to that of a multivariate Hawkes process but certain events are forbidden with…

Applications · Statistics 2014-02-14 Ban Zheng , François Roueff , Frédéric Abergel

We consider the learning of multi-agent Hawkes processes, a model containing multiple Hawkes processes with shared endogenous impact functions and different exogenous intensities. In the framework of stochastic maximum likelihood…

Machine Learning · Statistics 2018-02-15 Hongteng Xu , Xu Chen , Lawrence Carin

A simple Hawkes model have been developed for the price tick structure dynamics incorporating market microstructure noise and trade clustering. In this paper, the model is extended with random mark to deal with more realistic price tick…

Statistical Finance · Quantitative Finance 2019-07-30 Kyungsub Lee , Byoung Ki Seo

This article presents a Hawkes process model with Markovian baseline intensities for high-frequency order book data modeling. We classify intraday order book trading events into a range of categories based on their order types and the price…

Trading and Market Microstructure · Quantitative Finance 2022-01-07 Philip Protter , Qianfan Wu , Shihao Yang

We introduce a multivariate Hawkes process that accounts for the dynamics of market prices through the impact of market order arrivals at microstructural level. Our model is a point process mainly characterized by 4 kernels associated with…

Trading and Market Microstructure · Quantitative Finance 2013-01-08 E. Bacry , J. F Muzy

Up to now, the nonparametric analysis of multidimensional continuous-time Markov processes has focussed strongly on specific model choices, mostly related to symmetry of the semigroup. While this approach allows to study the performance of…

Statistics Theory · Mathematics 2022-11-04 Niklas Dexheimer , Claudia Strauch , Lukas Trottner

In the infectious disease literature, significant effort has been devoted to studying dynamics at a single scale. For example, compartmental models describing population-level dynamics are often formulated using differential equations. In…

Populations and Evolution · Quantitative Biology 2025-04-16 Yuan Yin , Jennifer A. Flegg , Mark B. Flegg

In this work, we extend deep learning-based numerical methods to fully coupled forward-backward stochastic differential equations (FBSDEs) within a non-Markovian framework. Error estimates and convergence are provided. In contrast to the…

Mathematical Finance · Quantitative Finance 2025-11-25 Hasib Uddin Molla , Matthew Backhouse , Ankit Banarjee , Jinniao Qiu

In this work we consider time series with a finite number of discrete point changes. We assume that the data in each segment follows a different probability density functions (pdf). We focus on the case where the data in all segments are…

Data Analysis, Statistics and Probability · Physics 2007-05-23 Ali Mohammad-Djafari , Olivier Feron

We consider the stochastic volatility model obtained by adding a compound Hawkes process to the volatility of the well-known Heston model. A Hawkes process is a self-exciting counting process with many applications in mathematical finance,…

Probability · Mathematics 2022-10-28 David R. Baños , Salvador Ortiz-Latorre , Oriol Zamora Font

High frequency data in finance have led to a deeper understanding on probability distributions of market prices. Several facts seem to be well stablished by empirical evidence. Specifically, probability distributions have the following…

Statistical Mechanics · Physics 2009-10-31 Jaume Masoliver , Miquel Montero , Josep M. Porra

The space-time dynamics of rigid inhomogeneities (inclusions) free to move in a randomly fluctuating fluid bio-membrane is derived and numerically simulated as a function of the membrane shape changes. Both vertically placed (embedded)…

Computational Physics · Physics 2007-05-23 H. Rafii-Tabar , H. R. Sepangi

We uncover a duality between relaxation and first passage processes in ergodic reversible Markovian dynamics in both discrete and continuous state-space. The duality exists in the form of a spectral interlacing -- the respective time scales…

Statistical Mechanics · Physics 2019-03-05 David Hartich , Aljaz Godec

Event history data from sports competitions have recently drawn increasing attention in sports analytics to generate data-driven strategies. Such data often exhibit self-excitation in the event occurrence and dependence within event…

Methodology · Statistics 2026-01-14 K. Ken Peng , X. Joan Hu , Tim B. Swartz

A general formalism is introduced to allow the steady state of non-Markovian processes on networks to be reduced to equivalent Markovian processes on the same substrates. The example of an epidemic spreading process is considered in detail,…

Physics and Society · Physics 2017-03-29 Michele Starnini , James P. Gleeson , Marián Boguñá

We consider a 2-dimensional marked Hawkes process with increasing baseline intensity in order to model prices on electricity intraday markets. This model allows to represent different empirical facts such as increasing market activity,…

Trading and Market Microstructure · Quantitative Finance 2021-03-17 Thomas Deschatre , Pierre Gruet

Signals coming from multivariate higher order conditional moments as well as the information contained in exogenous covariates, can be effectively exploited by rational investors to allocate their wealth among different risky investment…

Portfolio Management · Quantitative Finance 2016-01-21 Mauro Bernardi , Leopoldo Catania
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