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We consider the problem of modelling restricted interactions between continuously-observed time series as given by a known static graph (or network) structure. For this purpose, we define a parametric multivariate Graph Ornstein-Uhlenbeck…

Statistics Theory · Mathematics 2021-07-08 Valentin Courgeau , Almut E. D. Veraart

We extend recurrent neural networks to include several flexible timescales for each dimension of their output, which mechanically improves their abilities to account for processes with long memory or with highly disparate time scales. We…

Statistical Finance · Quantitative Finance 2023-08-21 Damien Challet , Vincent Ragel

The most common stochastic volatility models such as the Ornstein-Uhlenbeck (OU), the Heston, the exponential OU (ExpOU) and Hull-White models define volatility as a Markovian process. In this work we check of the applicability of the…

Physics and Society · Physics 2009-11-13 G. L. Buchbinder , K. M. Chistilin

We consider a multivariate heavy-tailed stochastic volatility model and analyze the large-sample behavior of its sample covariance matrix. We study the limiting behavior of its entries in the infinite-variance case and derive results for…

Probability · Mathematics 2016-05-10 Anja Janßen , Thomas Mikosch , Mohsen Rezapour , Xiaolei Xie

We consider the estimation of large covariance and precision matrices from high-dimensional sub-Gaussian or heavier-tailed observations with slowly decaying temporal dependence. The temporal dependence is allowed to be long-range so with…

Statistics Theory · Mathematics 2019-12-23 Hai Shu , Bin Nan

We propose a new stochastic model for biological neural nets which is a continuous time version of the model proposed by Galves and L\"ocherbach in [A. Galves and E. L\"ocherbach, "Infinite systems of interacting chains with memory of…

Probability · Mathematics 2015-07-24 Leonardo Nagami Coregliano

This paper provides several statistical estimators for the drift and volatility parameters of an Ornstein-Uhlenbeck process driven by fractional Brownian motion, whose observations can be made either continuously or at discrete time…

Probability · Mathematics 2017-03-29 Yaozhong Hu , David Nualart , Hongjuan Zhou

We consider the Black--Scholes model of financial market modified to capture the stochastic nature of volatility observed at real financial markets. For volatility driven by the Ornstein--Uhlenbeck process, we establish the existence of…

Pricing of Securities · Quantitative Finance 2015-10-08 Sergii Kuchuk-Iatsenko , Yuliya Mishura

Short-term memory is essential for cognitive processing, yet our understanding of its neural mechanisms remains unclear. Neuroscience has long focused on how sequential activity patterns, where neurons fire one after another within large…

Sparked by Al\`os, Le\'on, and Vives (2007); Fukasawa (2011, 2017); Gatheral, Jaisson, and Rosenbaum (2018), so-called rough stochastic volatility models such as the rough Bergomi model by Bayer, Friz, and Gatheral (2016) constitute the…

Pricing of Securities · Quantitative Finance 2018-10-09 Christian Bayer , Benjamin Stemper

We consider a transformed Ornstein-Uhlenbeck process model that can be a good candidate for modelling real-life processes characterized by a combination of time-reverting behaviour with heavy distribution tails. We begin with presenting the…

Probability · Mathematics 2011-03-01 K. Borovkov , G. Decrouez

We study the asymptotic behaviour of widely used tests for evaluating and comparing predictive accuracy when forecast errors exhibit heavy tails. In particular, when loss differentials have infinite variance, the Diebold-Mariano test…

Methodology · Statistics 2026-05-20 Jonas F. Frederiksen , Muneya Matsui , Rasmus S. Pedersen

A general class of non-Markov, supercritical Gaussian branching particle systems is introduced and its long-time asymptotics is studied. Both weak and strong laws of large numbers are developed with the limit object being characterized in…

Probability · Mathematics 2018-07-30 Michael A. Kouritzin , Khoa Lê , Deniz Sezer

We present an approximate analytical expression for the escape rate of time-dependent driven stochastic processes with an absorbing boundary such as the driven leaky integrate-and-fire model for neural spiking. The novel approximation is…

Data Analysis, Statistics and Probability · Physics 2007-05-23 Michael Schindler , Peter Talkner , Peter Hänggi

The scaling properties encompass in a simple analysis many of the volatility characteristics of financial markets. That is why we use them to probe the different degree of markets development. We empirically study the scaling properties of…

Statistical Mechanics · Physics 2008-12-02 T. Di Matteo , T. Aste , M. M. Dacorogna

This paper is a survey of recent results on the adaptive robust non parametric methods for the continuous time regression model with the semi - martingale noises with jumps. The noises are modeled by the L\'evy processes, the Ornstein --…

Statistics Theory · Mathematics 2019-09-17 Evgeny Pchelintsev , Serguei Pergamenshchikov

We consider a model describing a neuron and the input it receives from its dendritic tree when this input is a random perturbation of a periodic deterministic signal, driven by an Ornstein-Uhlenbeck process. The neuron itself is modeled by…

Probability · Mathematics 2014-09-19 R. Höpfner , E. Löcherbach , M. Thieullen

We compare the most common SV models such as the Ornstein-Uhlenbeck (OU), the Heston and the exponential OU (expOU) models. We try to decide which is the most appropriate one by studying their volatility autocorrelation and leverage effect,…

Statistical Mechanics · Physics 2009-11-10 Josep Perello , Jaume Masoliver , Napoleon Anento

In this paper, we propose the realized Hyperbolic GARCH model for the joint-dynamics of lowfrequency returns and realized measures that generalizes the realized GARCH model of Hansen et al.(2012) as well as the FLoGARCH model introduced by…

Methodology · Statistics 2021-04-27 El Hadji Mamadou Sall , El Hadji Deme , Abdou Ka Diongue

A novel application of the correlation matrix formalism to study dynamics of the financial evolution is presented. This formalism allows to quantify the memory effects as well as some potential repeatable intradaily structures in the…

Soft Condensed Matter · Physics 2009-11-07 S. Drozdz , J. Kwapien , F. Gruemmer , F. Ruf , J. Speth