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We address the problem of long-range memory in the financial markets. There are two conceptually different ways to reproduce power-law decay of auto-correlation function: using fractional Brownian motion as well as non-linear stochastic…

Statistical Finance · Quantitative Finance 2017-05-24 V. Gontis , A. Kononovicius

Fractional Brownian motion (fBm) is a ubiquitous diffusion process in which the memory effects of the stochastic transport result in the mean squared particle displacement following a power law, $\langle {\Delta r}^2 \rangle \sim…

Applied Physics · Physics 2020-10-06 Raviteja Vangara , Kim Ø. Rasmussen , Dimiter N. Petsev , Golan Bel , Boian S. Alexandrov

Fractional Brownian motion (fBm) has been used as a theoretical framework to study real time series appearing in diverse scientific fields. Because its intrinsic non-stationarity and long range dependence, its characterization via the Hurst…

Data Analysis, Statistics and Probability · Physics 2015-05-13 Lucas Lacasa , Bartolo Luque , Jordi Luque , Juan Carlos Nuno

In the last ten years, a number of ``Conventional Fluctuation Theorems'' have been derived for systems with deterministic or stochastic dynamics, in a transient or in a non-equilibrium stationary state. These theorems gave explicit…

Statistical Mechanics · Physics 2007-05-23 R. van Zon , E. G. D. Cohen

The distribution of the number of academic publications as a function of citation count for a given year is remarkably similar from year to year. We measure this similarity as a width of the distribution and find it to be approximately…

Physics and Society · Physics 2015-11-20 S. R. Goldberg , H. Anthony , T. S. Evans

The linear fractional stable motion generalizes two prominent classes of stochastic processes, namely stable L\'evy processes, and fractional Brownian motion. For this reason it may be regarded as a basic building block for continuous time…

Statistics Theory · Mathematics 2022-08-17 Fabian Mies , Mark Podolskij

Anomalous diffusion is an established phenomenon but still a theoretical challenge in non-equilibrium statistical mechanics. Physical models are built incrementally, and the most recent and most general family is based on the fractional…

Probability · Mathematics 2025-07-23 Christian Bender , Yana A. Butko , Mirko D'Ovidio , Gianni Pagnini

This work advances the theoretical foundations of reservoir computing (RC) by providing a unified treatment of fading memory and the echo state property (ESP) in both deterministic and stochastic settings. We investigate state-space…

Machine Learning · Statistics 2026-05-15 Juan-Pablo Ortega , Florian Rossmannek

Estimating volatility from recent high frequency data, we revisit the question of the smoothness of the volatility process. Our main result is that log-volatility behaves essentially as a fractional Brownian motion with Hurst exponent H of…

Statistical Finance · Quantitative Finance 2014-10-14 Jim Gatheral , Thibault Jaisson , Mathieu Rosenbaum

We analyse large deviations of time-averaged quantities in stochastic processes with long-range memory, where the dynamics at time t depends itself on the value q_t of the time-averaged quantity. First we consider the elephant random walk…

Statistical Mechanics · Physics 2020-08-05 Robert L. Jack , Rosemary J. Harris

Many studies in Economics and other disciplines have been reporting distributions following power-law behavior (i.e distributions of incomes (Pareto's law), city sizes (Zipf's law), frequencies of words in long sequences of text etc.)[1, 6,…

Mathematical Physics · Physics 2008-12-10 Francesco Vallone

Stochastic chains represent a wide and key variety of phenomena in many branches of science within the context of Information Theory and Thermodynamics. They are typically approached by a sequence of independent events or by a memoryless…

Statistical Mechanics · Physics 2017-03-06 J. Ricardo Arias-Gonzalez

Learning is based on synaptic plasticity, which affects and is driven by neural activity. Because pre- and postsynaptic spiking activity is shaped by randomness, the synaptic weights follow a stochastic process, requiring a probabilistic…

Neurons and Cognition · Quantitative Biology 2026-01-14 Jakob Stubenrauch , Naomi Auer , Richard Kempter , Benjamin Lindner

Hidden stochastic effects acting uniformly on a many-particle system can generate strong correlations and macroscopic relative fluctuations that persist at large system sizes, even when the particles themselves remain causally independent.…

Statistical Mechanics · Physics 2026-03-03 Kristian Stølevik Olsen

Fractional Brownian motion is a Gaussian stochastic process with stationary, long-time correlated increments and is frequently used to model anomalous diffusion processes. We study numerically fractional Brownian motion confined to a finite…

Statistical Mechanics · Physics 2019-03-22 T. Guggenberger , G. Pagnini , T. Vojta , R. Metzler

Attention mechanisms underpin the computational power of Transformer models, which have achieved remarkable success across diverse domains. Yet understanding and extending the principles underlying self-attention remains a key challenge for…

Machine Learning · Computer Science 2025-11-14 Cheng Kevin Qu , Andrew Ly , Pulin Gong

Many human knowledge systems, such as science, law, and invention, are built on documents and the citations that link them. Citations, while serving multiple purposes, primarily function as a way to explicitly document the use of prior work…

Physics and Society · Physics 2025-01-29 Sadamori Kojaku , Robert Mahari , Sandro Claudio Lera , Esteban Moro , Alex Pentland , Yong-Yeol Ahn

Mathematical models of motility are often based on random-walk descriptions of discrete individuals that can move according to certain rules. It is usually the case that large masses concentrated in small regions of space have a great…

Physics and Society · Physics 2022-11-23 Carles Falcó

In several real-world networks like the Internet, WWW etc., the number of links grow in time in a non-linear fashion. We consider growing networks in which the number of outgoing links is a non-linear function of time but new links between…

Statistical Mechanics · Physics 2009-11-10 Parongama Sen

We study the long-time asymptotics of the probability P_t that the Riemann-Liouville fractional Brownian motion with Hurst index H does not escape from a fixed interval [-L,L] up to time t. We show that for any H \in ]0,1], for both…

Statistical Mechanics · Physics 2008-01-07 G. Oshanin