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We conduct a preliminary analysis of a pairs trading strategy using the Ornstein-Uhlenbeck (OU) process to model stock price spreads. We compare this approach to a naive pairs trading strategy that uses a rolling window to calculate mean…

Trading and Market Microstructure · Quantitative Finance 2024-12-18 Jirat Suchato , Sean Wiryadi , Danran Chen , Ava Zhao , Michael Yue

Active Ornstein-Uhlenbeck particles (AOUPs) are overdamped particles in an interaction potential subject to external Ornstein-Uhlenbeck noises. They can be transformed into a system of underdamped particles under additional velocity…

Soft Condensed Matter · Physics 2019-08-14 L. L. Bonilla

Microscopic swimming particles, which dissipate energy to execute persistent directed motion, are a classic example of a non-equilibrium system. We investigate the non-interacting Ornstein--Uhlenbeck Particle (OUP), which is propelled…

Soft Condensed Matter · Physics 2018-04-09 Cato Sandford , Alexander Y. Grosberg , Jean-François Joanny

This paper studies Langevin equation with random damping due to multiplicative noise and its solution. Two types of multiplicative noise, namely the dichotomous noise and fractional Gaussian noise are considered. Their solutions are…

Statistical Mechanics · Physics 2017-11-30 Chai Hok Eab , S. C. Lim

We study the fluctuation properties of a one-dimensional many-body quantum system composed of interacting bosons, and investigate the regimes where quantum noise or, respectively, thermal excitations are dominant. For the latter we develop…

Quantum Gases · Physics 2010-07-16 H. -P. Stimming , N. J. Mauser , J. Schmiedmayer , I. E. Mazets

We consider a fractional Ornstein-Uhlenbeck process involving a stochastic forcing term in the drift, as a solution of a linear stochastic differential equation driven by a fractional Brownian motion. For such process we specify mean and…

Probability · Mathematics 2020-09-25 Giacomo Ascione , Yuliya Mishura , Enrica Pirozzi

We study the stationary fluctuations of independent run-and-tumble particles. We prove that the joint densities of particles with given internal state converges to an infinite dimensional Ornstein-Uhlenbeck process. We also consider an…

Probability · Mathematics 2024-03-13 Frank Redig , Hidde van Wiechen

In this thesis, we consider an $N$-dimensional Ornstein-Uhlenbeck (OU) process satisfying the linear stochastic differential equation $d\mathbf x(t) = - \mathbf B\mathbf x(t) dt + \boldsymbol \Sigma d \mathbf w(t).$ Here, $\mathbf B$ is a…

Statistics Theory · Mathematics 2024-09-19 Vivek Kaushik

Lognormality was found experimentally for coarse-grained squared turbulence velocity and velocity increment when the coarsening scale is comparable to the correlation scale of the velocity (Mouri et al. Phys. Fluids 21, 065107, 2009). We…

Chaotic Dynamics · Physics 2013-01-29 Takeshi Matsumoto , Masanori Takaoka

An Ornstein-Uhlenbeck (OU) process can be considered as a continuous time interpolation of the discrete time AR$(1)$ process. Departing from this fact, we analyse in this work the effect of iterating OU treated as a linear operator that…

Statistics Theory · Mathematics 2012-10-02 Argimiro Arratia , Alejandra Cabaña , Enrique M. Cabaña

We investigate the stochastic motion of a Brownian particle in the harmonic potential with a time-dependent force constant. It may describe the motion of a colloidal particle in an optical trap where the potential well is formed by a…

Statistical Mechanics · Physics 2014-04-11 Chulan Kwon , Jae Dong Noh , Hyunggyu Park

We study the active work fluctuations of an active Ornstein-Uhlenbeck particle in the presence of a confining harmonic potential. We tackle the problem analytically both for stationary and generic uncorrelated initial states. Our results…

Statistical Mechanics · Physics 2023-02-27 Massimiliano Semeraro , Giuseppe Gonnella , Antonio Suma , Marco Zamparo

We study the dynamics of the center of mass of a Brownian particle levitated in a Paul trap. We focus on the overdamped regime in the context of levitodynamics, comparing theory with our numerical simulations and experimental data from a…

Statistical Mechanics · Physics 2020-05-20 Gerard P. Conangla , Dwight Nwaigwe , Jan Wehr , Raúl A. Rica

This paper studies one-dimensional Ornstein-Uhlenbeck processes, with the distinguishing feature that they are reflected on a single boundary (put at level 0) or two boundaries (put at levels 0 and d>0). In the literature they are referred…

Probability · Mathematics 2014-07-03 Gang Huang , Michel Mandjes , Peter Spreij

The problem of analyzing the Ito stochastic differential system and its filtering has received attention. The classical approach to accomplish filtering for the Ito SDE is the Kushner equation. In contrast to the classical filtering…

Optimization and Control · Mathematics 2019-10-15 Shaival H. Nagarsheth , Dhruvi S. Bhatt , Shambhu N. Sharma

We analyze the problem of the analytical characterization of the probability distribution of financial returns in the exponential Ornstein-Uhlenbeck model with stochastic volatility. In this model the prices are driven by a Geometric…

Computational Finance · Quantitative Finance 2009-11-13 Giacomo Bormetti , Valentina Cazzola , Guido Montagna , Oreste Nicrosini

We establish an exact mapping between (i) the equilibrium (imaginary time) dynamics of non-interacting fermions trapped in a harmonic potential at temperature $T=1/\beta$ and (ii) non-intersecting Ornstein-Uhlenbeck (OU) particles…

Statistical Mechanics · Physics 2018-01-31 Pierre Le Doussal , Satya N. Majumdar , Gregory Schehr

The Ornstein-Uhlenbeck (OU) process plays a major role in the analysis of the evolution of phenotypic traits along phylogenies. The standard OU process includes drift and stabilizing selection and assumes that species evolve independently.…

Populations and Evolution · Quantitative Biology 2020-11-23 Krzysztof Bartoszek , Sylvain Glémin , Ingemar Kaj , Martin Lascoux

Brownian oscillator, i.e. a micron-sized or smaller particle trapped in a thermally fluctuating environment is studied. The confining harmonic potential can move with a constant velocity. As distinct from the standard Langevin theory, the…

Statistical Mechanics · Physics 2012-02-21 Lukas Glod , Gabriela Vasziova , Jana Tothova , Vladimir Lisy

The dynamical evolution of dislocations in plastically deformed metals is controlled by both deterministic factors arising out of applied loads and stochastic effects appearing due to fluctuations of internal stress. Such type of stochastic…

Statistical Mechanics · Physics 2016-09-21 Amit K. Chattopadhyay , Elias C. Aifantis