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We discuss suitable classes of diffusion processes, for which functionals relevant to finance can be computed via Monte Carlo methods. In particular, we construct exact simulation schemes for processes from this class. However, should the…

Numerical Analysis · Mathematics 2012-04-06 Jan Baldeaux , Eckhard Platen

The sharing of microdata, such as fund holdings and derivative instruments, by regulatory institutions presents a unique challenge due to strict data confidentiality and privacy regulations. These challenges often hinder the ability of both…

Machine Learning · Computer Science 2023-09-06 Timur Sattarov , Marco Schreyer , Damian Borth

The generation of synthetic financial data is a critical technology in the financial domain, addressing challenges posed by limited data availability. Traditionally, statistical models have been employed to generate synthetic data. However,…

Computational Finance · Quantitative Finance 2025-03-07 Yuki Tanaka , Ryuji Hashimoto , Takehiro Takayanagi , Zhe Piao , Yuri Murayama , Kiyoshi Izumi

To synthesize diffusion MR measurements from Monte-Carlo simulation using tissue models with sizes comparable to those of scan voxels. Larger regions enable restricting structures to be modeled in greater detail and improve accuracy and…

Computational Physics · Physics 2017-01-16 Matt G Hall , Gemma Nedjati-Gilani , Daniel C Alexander

We develop exact Markov chain Monte Carlo methods for discretely-sampled, directly and indirectly observed diffusions. The qualification "exact" refers to the fact that the invariant and limiting distribution of the Markov chains is the…

Financial markets are complex systems characterized by high statistical noise, nonlinearity, volatility, and constant evolution. Thus, modeling them is extremely hard. Here, we address the task of generating realistic and responsive Limit…

Trading and Market Microstructure · Quantitative Finance 2025-11-21 Leonardo Berti , Bardh Prenkaj , Paola Velardi

High-quality power flow datasets are essential for training machine learning models in power systems. However, security and privacy concerns restrict access to real-world data, making statistically accurate and physically consistent…

Machine Learning · Computer Science 2025-08-26 Milad Hoseinpour , Vladimir Dvorkin

Diffusion models offer stable training and state-of-the-art performance for deep generative modeling tasks. Here, we consider their use in the context of multivariate subsurface modeling and probabilistic inversion. We first demonstrate…

Computer Vision and Pattern Recognition · Computer Science 2026-01-28 Roberto Miele , Niklas Linde

Direct sampling of multi-dimensional systems with quantum Monte Carlo methods allows exact account of many-body effects or particle correlations. The most straightforward approach to solve the Schr\"odinger equation, Diffusion Monte Carlo,…

Quantum Physics · Physics 2017-09-07 Ilkka Ruokosenmäki , Tapio T. Rantala

Despite its practical significance, generating realistic synthetic financial time series is challenging due to statistical properties known as stylized facts, such as fat tails, volatility clustering, and seasonality patterns. Various…

Computational Finance · Quantitative Finance 2024-10-25 Tomonori Takahashi , Takayuki Mizuno

This article reviews the basic computational techniques for carrying out multi-scale simulations using statistical methods, with the focus on simulations of epitaxial growth. First, the statistical-physics background behind Monte Carlo…

Materials Science · Physics 2009-04-17 Peter Kratzer

In modern process industries, data-driven models are important tools for real-time monitoring when key performance indicators are difficult to measure directly. While accurate predictions are essential, reliable uncertainty quantification…

Machine Learning · Computer Science 2026-04-07 Yiran Ma , Jerome Le Ny , Zhichao Chen , Zhihuan Song

We develop diffusion-based samplers for target distributions known up to a normalising constant. To this end, we rely on the well-known diffusion path that smoothly interpolates between a simple base distribution and the target, popularised…

We consider the problem of simulating loss probabilities and conditional excesses for linear asset portfolios under the t-copula model. Although in the literature on market risk management there are papers proposing efficient variance…

Risk Management · Quantitative Finance 2017-08-07 Halis Sak , İsmail Başoğlu

Discrete diffusion models are a class of generative models that produce samples from an approximated data distribution within a discrete state space. Often, there is a need to target specific regions of the data distribution. Current…

Machine Learning · Computer Science 2025-09-03 Cheuk Kit Lee , Paul Jeha , Jes Frellsen , Pietro Lio , Michael Samuel Albergo , Francisco Vargas

Recent advances in generative models have enabled significant progress in tasks such as generating and editing images from text, as well as creating videos from text prompts, and these methods are being applied across various fields.…

Artificial Intelligence · Computer Science 2025-09-03 Taegyeong Lee , Jiwon Park , Kyunga Bang , Seunghyun Hwang , Ung-Jin Jang

We briefly review the principles, mathematical bases, numerical shortcuts and applications of fast random walk (FRW) algorithms. This Monte Carlo technique allows one to simulate individual trajectories of diffusing particles in order to…

Computational Physics · Physics 2013-05-01 Denis Grebenkov

Simulation methods have always been instrumental in finance, and data-driven methods with minimal model specification, commonly referred to as generative models, have attracted increasing attention, especially after the success of deep…

Portfolio Management · Quantitative Finance 2025-04-24 Adil Rengim Cetingoz , Charles-Albert Lehalle

Data scarcity in medical imaging poses significant challenges due to privacy concerns. Diffusion models, a recent generative modeling technique, offer a potential solution by generating synthetic and realistic data. However, questions…

Image and Video Processing · Electrical Eng. & Systems 2024-12-24 Abdullah al Nomaan Nafi , Md. Alamgir Hossain , Rakib Hossain Rifat , Md Mahabub Uz Zaman , Md Manjurul Ahsan , Shivakumar Raman

In predictive modeling with simulation or machine learning, it is critical to accurately assess the quality of estimated values through output analysis. In recent decades output analysis has become enriched with methods that quantify the…

Methodology · Statistics 2023-10-27 Kimia Vahdat , Sara Shashaani
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