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Related papers: Malliavin calculcus for a Hawkes process

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Hawkes process is a self-exciting point process with clustering effect whose intensity depends on its entire past history. It has wide applications in neuroscience, finance and many other fields. In this paper, we obtain a functional…

Probability · Mathematics 2014-10-16 Lingjiong Zhu

In this paper we propose an overview of the recent academic literature devoted to the applications of Hawkes processes in finance. Hawkes processes constitute a particular class of multivariate point processes that has become very popular…

Trading and Market Microstructure · Quantitative Finance 2015-05-19 Emmanuel Bacry , Iacopo Mastromatteo , Jean-François Muzy

We study fluctuations of small noise multiscale diffusions around their homogenized deterministic limit. We derive quantitative rates of convergence of the fluctuation processes to their Gaussian limits in the appropriate Wasserstein metric…

Probability · Mathematics 2024-11-05 Solesne Bourguin , Konstantinos Spiliopoulos

This paper introduces the Neural Network for Nonlinear Hawkes processes (NNNH), a non-parametric method based on neural networks to fit nonlinear Hawkes processes. Our method is suitable for analyzing large datasets in which events exhibit…

Machine Learning · Statistics 2023-03-07 Sobin Joseph , Shashi Jain

By using Malliavin calculus, explicit derivative formulae are established for a class of semi-linear functional stochastic partial differential equations with additive or multiplicative noise. As applications, gradient estimates and Harnack…

Probability · Mathematics 2011-10-25 Jianhai Bao , Feng-Yu Wang , Chenggui Yuan

In this paper, we present a new method for pricing CMS derivatives. We use Mallaivin's calculus to establish a model-free connection between the price of a CMS derivative and a quadratic payoff. Then, we apply Watanabe's expansions to…

Mathematical Finance · Quantitative Finance 2024-04-03 David García-Lorite , Raul Merino

We show that the jumps correlation matrix of a multivariate Hawkes process is related to the Hawkes kernel matrix through a system of Wiener-Hopf integral equations. A Wiener-Hopf argument allows one to prove that this system (in which the…

Methodology · Statistics 2015-02-16 Emmanuel Bacry , Jean-Francois Muzy

We study the adapted solution, numerical methods, and related convergence analysis for a unified backward stochastic partial differential equation (B-SPDE). The equation is vector-valued, whose drift and diffusion coefficients may involve…

Probability · Mathematics 2024-02-21 Wanyang Dai

Multivariate Hawkes Processes (MHPs) are an important class of temporal point processes that have enabled key advances in understanding and predicting social information systems. However, due to their complex modeling of temporal…

Machine Learning · Computer Science 2020-03-02 Maximilian Nickel , Matthew Le

Solutions of stochastic Volterra (integral) equations are not Markov processes, and therefore classical methods, like dynamic programming, cannot be used to study optimal control problems for such equations. However, we show that by using…

Optimization and Control · Mathematics 2015-08-28 Nacira Agram , Bernt Øksendal

Within the framework of the previous paper [8]. we develop a generalized stochastic calculus for processes associated to higher order diffusion operators. Applications to the study of a Cauchy problem, a Feynman-Kac formula and a…

Probability · Mathematics 2016-03-18 Stefano Bonaccorsi , Craig Calcaterra , Sonia Mazzucchi

In this paper we study backward stochastic differential equations with general terminal value and general random generator. In particular, we do not require the terminal value be given by a forward diffusion equation. The randomness of the…

Probability · Mathematics 2012-02-22 Yaozhong Hu , David Nualart , Xiaoming Song

For a mixed stochastic differential driven by independent fractional Brownian motions and Wiener processes, the existence and integrability of the Malliavin derivative of its solution are established. It is also proved that the solution…

Probability · Mathematics 2013-09-25 Georgiy Shevchenko , Taras Shalaiko

Malliavin weight sampling (MWS) is a stochastic calculus technique for computing the derivatives of averaged system properties with respect to parameters in stochastic simulations, without perturbing the system's dynamics. It applies to…

Statistical Mechanics · Physics 2013-12-31 Patrick B. Warren , Rosalind J. Allen

In this paper, we establish a probabilistic representation as well as some integration by parts formulae for the marginal law at a given time maturity of some stochastic volatility model with unbounded drift. Relying on a perturbation…

Probability · Mathematics 2020-11-23 Junchao Chen , Noufel Frikha , Houzhi Li

Multi-dimensional Hawkes process (MHP) is a class of self and mutually exciting point processes that find wide range of applications -- from prediction of earthquakes to modelling of order books in high frequency trading. This paper makes…

Machine Learning · Statistics 2020-06-05 Sobin Joseph , Lekhapriya Dheeraj Kashyap , Shashi Jain

We establish an integration by parts formula in an abstract framework in order to study the regularity of the law for processes solution of stochastic differential equations with jumps, including equations with discontinuous coefficients…

Probability · Mathematics 2012-09-14 Emmanuelle Clement , Vlad Bally

We prove a law of large numbers and functional central limit theorem for a class of multivariate Hawkes processes with time-dependent reproduction rate. We address the difficulties induced by the use of non-convolutive Volterra processes by…

Probability · Mathematics 2025-01-30 Thomas Deschatre , Pierre Gruet , Antoine Lotz

Hawkes processes are often applied to model dependence and interaction phenomena in multivariate event data sets, such as neuronal spike trains, social interactions, and financial transactions. In the nonparametric setting, learning the…

Statistics Theory · Mathematics 2023-09-04 Deborah Sulem , Vincent Rivoirard , Judith Rousseau

In this paper we consider multivariate Hawkes processes with baseline hazard and kernel functions that depend on time. This defines a class of locally stationary processes. We discuss estimation of the time-dependent baseline hazard and…

Statistics Theory · Mathematics 2017-07-17 Enno Mammen