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This paper is devoted to the price-storage dynamics in natural gas markets. A novel stochastic path-dependent volatility model is introduced with path-dependence in both price volatility and storage increments. Model calibrations are…

Mathematical Finance · Quantitative Finance 2025-07-22 Jinniao Qiu , Antony Ware , Yang Yang

We consider the general class of time-homogeneous stochastic dynamical systems, both discrete and continuous, and study the problem of learning a representation of the state that faithfully captures its dynamics. This is instrumental to…

Machine Learning · Computer Science 2024-03-15 Vladimir R. Kostic , Pietro Novelli , Riccardo Grazzi , Karim Lounici , Massimiliano Pontil

We examine whether model-based spot volatility estimators extracted from traded options data enhance the predictive power of the Heterogeneous Autoregressive (HAR) model for realized volatility. Specifically, we infer spot volatility under…

Risk Management · Quantitative Finance 2026-04-13 Zheqi Fan , Meng Melody Wang , Yifan Ye

Deep learning applies hierarchical layers of hidden variables to construct nonlinear high dimensional predictors. Our goal is to develop and train deep learning architectures for spatio-temporal modeling. Training a deep architecture is…

Machine Learning · Statistics 2018-05-08 Matthew F. Dixon , Nicholas G. Polson , Vadim O. Sokolov

We propose derivative-informed neural operators (DINOs), a general family of neural networks to approximate operators as infinite-dimensional mappings from input function spaces to output function spaces or quantities of interest. After…

Numerical Analysis · Mathematics 2023-10-18 Thomas O'Leary-Roseberry , Peng Chen , Umberto Villa , Omar Ghattas

Deep state-space models (DSSMs) enable temporal predictions by learning the underlying dynamics of observed sequence data. They are often trained by maximising the evidence lower bound. However, as we show, this does not ensure the model…

Machine Learning · Computer Science 2026-02-27 Alexej Klushyn , Richard Kurle , Maximilian Soelch , Botond Cseke , Patrick van der Smagt

Learning solution operators for differential equations with neural networks has shown great potential in scientific computing, but ensuring their stability under input perturbations remains a critical challenge. This paper presents a robust…

Machine Learning · Computer Science 2026-01-13 Chutian Huang , Chang Ma , Kaibo Wang , Yang Xiang

Most existing neural network-based approaches for solving stochastic optimal control problems using the associated backward dynamic programming principle rely on the ability to simulate the underlying state variables. However, in some…

Machine Learning · Statistics 2024-01-30 Christian Yeo

We study the performance of stochastically trained deep neural networks (DNNs) whose synaptic weights are implemented using emerging memristive devices that exhibit limited dynamic range, resolution, and variability in their programming…

Machine Learning · Statistics 2017-11-13 Anakha V Babu , Bipin Rajendran

Deep neural networks (DNNs) have surpassed human-level accuracy in a variety of cognitive tasks but at the cost of significant memory/time requirements in DNN training. This limits their deployment in energy and memory limited applications…

In computational physics, a longstanding challenge lies in finding numerical solutions to partial differential equations (PDEs). Recently, research attention has increasingly focused on Neural Operator methods, which are notable for their…

Machine Learning · Computer Science 2025-09-26 Yichen Song , Yalun Wu , Yunbo Wang , Xiaokang Yang

Focused ultrasound (FUS) therapy is a promising tool for optimally targeted treatment of spinal cord injuries (SCI), offering submillimeter precision to enhance blood flow at injury sites while minimizing impact on surrounding tissues.…

Medical Physics · Physics 2024-12-23 Avisha Kumar , Xuzhe Zhi , Zan Ahmad , Minglang Yin , Amir Manbachi

This thesis develops a new framework for modelling price processes in finance, such as an equity price or foreign exchange rate. This can be related to the conventional Ito calculus-based framework through the time integral of a price's…

Mathematical Finance · Quantitative Finance 2025-03-21 Ryan McCrickerd

The identification and modeling of time-varying systems is a fundamental challenge in signal processing and system identification. To address this challenge, we propose a class of time-varying state-space model (SSM) based neural networks…

Machine Learning · Computer Science 2026-05-18 Sanja Karilanova , Subhrakanti Dey , Ayça Özçelikkale

Accurate volatility forecasting is essential in banking, investment, and risk management, because expectations about future market movements directly influence current decisions. This study proposes a hybrid modelling framework that…

Trading and Market Microstructure · Quantitative Finance 2025-12-16 Anna Perekhodko , Robert Ślepaczuk

Neural Operators offer a powerful, data-driven tool for solving parametric PDEs as they can represent maps between infinite-dimensional function spaces. In this work, we employ physics-informed Neural Operators in the context of…

Machine Learning · Statistics 2023-03-08 Sebastian Kaltenbach , Paris Perdikaris , Phaedon-Stelios Koutsourelakis

Stochastic nonlinear dynamical systems are ubiquitous in modern, real-world applications. Yet, estimating the unknown parameters of stochastic, nonlinear dynamical models remains a challenging problem. The majority of existing methods…

Machine Learning · Statistics 2022-05-06 Anubhab Ghosh , Mohamed Abdalmoaty , Saikat Chatterjee , Håkan Hjalmarsson

In this paper, we compare the intrusive proper orthogonal decomposition (POD) with Galerkin projection and the data-driven dynamic mode decomposition (DMD), for Heston's option pricing model. The full order model is obtained by…

Numerical Analysis · Mathematics 2025-01-03 Sinem Kozpınar , Murat Uzunca , Bülent Karasözen

This paper analyses the implementation and calibration of the Heston Stochastic Volatility Model. We first explain how characteristic functions can be used to estimate option prices. Then we consider the implementation of the Heston model,…

Pricing of Securities · Quantitative Finance 2015-03-18 Ricardo Crisostomo

In this work, we propose a new deep learning-based scheme for solving high dimensional nonlinear backward stochastic differential equations (BSDEs). The idea is to reformulate the problem as a global optimization, where the local loss…

Numerical Analysis · Mathematics 2024-04-18 Lorenc Kapllani , Long Teng