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Reducing financial risk is of paramount importance to investors, financial institutions, and corporations. Since the pioneering contribution of Johnson (1960), the optimal hedge ratio based on futures is regularly utilized. The current…

Risk Management · Quantitative Finance 2024-08-02 Abdulnasser Hatemi-J

In [Han \& Schied, 2023, \textit{arXiv 2307.02582}], an easily computable scale-invariant estimator $\widehat{\mathscr{R}}^s_n$ was constructed to estimate the Hurst parameter of the drifted fractional Brownian motion $X$ from its…

Statistical Finance · Quantitative Finance 2025-09-09 Xiyue Han , Alexander Schied

We consider a model of stochastic volatility which combines features of the multiplicative model for large volatilities and of the Heston model for small volatilities. The steady-state distribution in this model is a Beta Prime and is…

Mathematical Finance · Quantitative Finance 2024-04-15 M. Dashti Moghaddam , R. A. Serota

This article explores the required amount of time series points from a high-speed computer network to accurately estimate the Hurst exponent. The methodology consists in designing an experiment using estimators that are applied to time…

Signal Processing · Electrical Eng. & Systems 2024-10-28 Ginno Millán , Román Osorio-Comparán , Gastón Lefranc

Oil price data have a complicated multi-scale structure that may vary with time. We use time-frequency analysis to identify the main features of these variations and, in particular, the regime shifts. The analysis is based on a…

Statistical Finance · Quantitative Finance 2019-05-01 Josselin Garnier , Knut Solna

Motivated by recent developments in conformal field theory (CFT), we devise a Quantum Monte Carlo (QMC) method to calculate the moments of the partially transposed reduced density matrix at finite temperature. These are used to construct…

Strongly Correlated Electrons · Physics 2014-08-08 Chia-Min Chung , Vincenzo Alba , Lars Bonnes , Pochung Chen , Andreas M. Läuchli

Based on the mathematical arguments formulated within the Multifractal Detrended Fluctuation Analysis (MFDFA) approach it is shown that in the uncorrelated time series from the Gaussian basin of attraction the effects resembling…

Data Analysis, Statistics and Probability · Physics 2023-03-30 Jarosław Kwapień , Pawel Blasiak , Stanisław Drożdż , Paweł Oświęcimka

In this article we look at stochastic processes with uncertain parameters, and consider different ways in which information is obtained when carrying out observations. For example we focus on the case of a the random evolution of a traded…

Mathematical Finance · Quantitative Finance 2024-07-08 Will Hicks

Realized statistics based on high frequency returns have become very popular in financial economics. In recent years, different non-parametric estimators of the variation of a log-price process have appeared. These were developed by many…

Probability · Mathematics 2014-11-20 Hacène Djellout , Arnaud Guillin , Yacouba Samoura

This paper presents a stochastic model for block arrival times based on the difficulty retargeting rule used in Bitcoin, as well as other proof-of-work blockchains. Unlike some previous work, this paper explicitly models the difficulty…

Cryptography and Security · Computer Science 2018-12-31 Daniel Fullmer , A. S. Morse

Multiplicative random cascade model naturally reproduces the intermittency or multifractality, which is frequently shown among hierarchical complex systems such as turbulence and financial markets. As described herein, we investigate the…

Statistical Finance · Quantitative Finance 2018-09-05 Jun-ichi Maskawa , Koji Kuroda , Joshin Murai

The concept of multifractality offers a powerful formal tool to filter out multitude of the most relevant characteristics of complex time series. The related studies thus far presented in the scientific literature typically limit themselves…

Statistical Finance · Quantitative Finance 2018-09-25 Stanisław Drożdż , Rafał Kowalski , Paweł Oświȩcimka , Rafał Rak , Robert Gȩbarowski

This paper offers a thorough examination of the univariate predictability in cryptocurrency time-series. By exploiting a combination of complexity measure and model predictions we explore the cryptocurrencies time-series forecasting task…

Statistical Finance · Quantitative Finance 2025-02-14 Francesco Puoti , Fabrizio Pittorino , Manuel Roveri

Multiplicity distributions of charged particles and their event-by-event fluctuations have been compiled for relativistic heavy-ion collisions from the available experimental data at Brookhaven National Laboratory and CERN and also by the…

Nuclear Experiment · Physics 2016-06-20 Maitreyee Mukherjee , Sumit Basu , Subikash Choudhury , Tapan K. Nayak

The usage of a spot volatility estimate based on a volatility decomposition in a time-changed price-model according to the trading times is investigated. In this model clock-time volatility splits up into the product of tick-time volatility…

Probability · Mathematics 2016-05-10 Rainer Dahlhaus , Sophon Tunyavetchakit

The aim of this paper is to investigate the effect of a novel method called linear law-based feature space transformation (LLT) on the accuracy of intraday price movement prediction of cryptocurrencies. To do this, the 1-minute interval…

Statistical Finance · Quantitative Finance 2023-05-09 Marcell T. Kurbucz , Péter Pósfay , Antal Jakovác

Though simple inflationary models describe the CMB well, their corrections are often plagued by infrared effects that obstruct a reliable calculation of late-time behaviour. We adapt to cosmology tools designed to address similar issues in…

General Relativity and Quantum Cosmology · Physics 2016-08-30 C. P. Burgess , R. Holman , G. Tasinato

A Bayesian procedure is developed for multivariate stochastic volatility, using state space models. An autoregressive model for the log-returns is employed. We generalize the inverted Wishart distribution to allow for different correlation…

Statistical Finance · Quantitative Finance 2008-12-02 K. Triantafyllopoulos

Properties of low-variability periods in the time series are analysed. The theoretical approach is used to show the relationship between the multi-scaling of low-variability periods and multi-affinity of the time series. It is shown that…

Statistical Mechanics · Physics 2008-12-02 R. Kitt , J. Kalda

In this paper, an experimental velocity database of a bacterial collective motion , e.g., \textit{B. subtilis}, in turbulent phase with volume filling fraction $84\%$ provided by Professor Goldstein at the Cambridge University UK, was…

Fluid Dynamics · Physics 2016-07-28 Xiang Qiu , Long Ding , Yongxiang Huang , Ming Chen , Zhiming Lu , Yulu Liu , Quan Zhou
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