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We show that assuming that the returns are independent when conditioned on the value of their variance (volatility), which itself varies in time randomly, then the distribution of returns is well described by the statistics of the sum of…

Statistical Finance · Quantitative Finance 2025-04-30 Hernán Larralde , Roberto Mota Navarro

We prove a metric space scaling limit for a critical random graph with independent and identically distributed degrees having power-law tail behaviour with exponent $\alpha+1$, where $\alpha \in (1,2)$. The limiting components are…

Probability · Mathematics 2021-08-02 Guillaume Conchon--Kerjan , Christina Goldschmidt

We obtain sharp large deviation estimates for exceedance probabilities in dependent triangular array threshold models with a diverging number of latent factors. The prefactors quantify how latent-factor dependence and tail geometry enter at…

Probability · Mathematics 2025-10-21 Fengnan Deng , Anand N. Vidyashankar , Jeffrey F. Collamore

We study the avalanche statistics observed in a minimal random growth model. The growth is governed by a reproduction rate obeying a probability distribution with finite mean a and variance va. These two control parameters determine if the…

Data Analysis, Statistics and Probability · Physics 2021-11-17 S. Polizzi , F. -J. Perez-Reche , A. Arneodo , F. Argoul

The long-term behavior of a supercritical branching random walk can be described and analyzed with the help of Biggins' martingales, parametrized by real or complex numbers. The study of these martingales with complex parameters is a rather…

Probability · Mathematics 2018-08-17 Alexander Iksanov , Konrad Kolesko , Matthias Meiners

Many-variable differential equations with random coefficients provide powerful models for the dynamics of many interacting species in ecology. These models are known to exhibit a dynamical phase transition from a phase where population…

Statistical Mechanics · Physics 2025-02-19 Thibaut Arnoulx de Pirey , Guy Bunin

For a continuous-time catalytic branching random walk (CBRW) on Z, with an arbitrary finite number of catalysts, we study the asymptotic behavior of position of the rightmost particle when time tends to infinity. The mild requirements…

Probability · Mathematics 2020-07-14 Ekaterina Vl. Bulinskaya

An introductory review to short-time critical dynamics is given. From the scaling relation valid already in the early stage of the evolution of a system at or near the critical point, one derives power law behaviour for various quantities.…

High Energy Physics - Lattice · Physics 2017-08-23 L. Schuelke

We investigate critical wetting transitions for fluids adsorbed in wedge-like geometries where the substrate height varies as a power-law, $z(x,y) \sim |x| ^\gamma$, in one direction. As $\gamma$ is increased from 0 to 1, the substrate…

Soft Condensed Matter · Physics 2009-11-07 A. Sartori , A. O. Parry

Starting from the model of continuous time random walk, we focus our interest on random walks in which the probability distributions of the waiting times and jumps have fat tails characterized by power laws with exponent between 0 and 1 for…

Probability · Mathematics 2008-01-03 Rudolf Gorenflo , Entsar A. A. Abdel-Rehim

We consider a class of multiplicative processes which, added with stochastic reset events, give origin to stationary distributions with power-law tails -- ubiquitous in the statistics of social, economic, and ecological systems. Our main…

Statistical Finance · Quantitative Finance 2021-05-26 Damián H. Zanette , Susanna Manrubia

We consider the tail probabilities of stock returns for a general class of stochastic volatility models. In these models, the stochastic differential equation for volatility is autonomous, time-homogeneous and dependent on only a finite…

Statistical Finance · Quantitative Finance 2019-03-21 Henrik O. Rasmussen , Paul Wilmott

The presence of self-organized criticality in biology is often evidenced by a power-law scaling of event size distributions, which can be measured by linear regression on logarithmic axes. We show here that such a procedure does not…

Adaptation and Self-Organizing Systems · Physics 2015-05-14 Jonathan Touboul , Alain Destexhe

Subordinating a random walk to a renewal process yields a continuous time random walk (CTRW) model for diffusion, including the possibility of anomalous diffusion. Transition densities of scaling limits of power law CTRWs have been shown to…

Probability · Mathematics 2010-05-14 Peter Straka , Bruce Ian Henry

Extreme events can come either from point processes, when the size or energy of the events is above a certain threshold, or from time series, when the intensity of a signal surpasses a threshold value. We are particularly concerned by the…

Statistical Mechanics · Physics 2017-07-26 Alvaro Corral

Critical states are sometimes identified experimentally through power-law statistics or universal scaling functions. We show here that such features naturally emerge from networks in self-sustained irregular regimes away from criticality.…

Neurons and Cognition · Quantitative Biology 2017-02-08 Jonathan Touboul , Alain Destexhe

Plasticity of two-dimensional discrete dislocation systems is studied. It is shown, that at some threshold stress level the response becomes stress-rate dependent. Below this stress level the stress-plastic strain relation exhibits…

Statistical Mechanics · Physics 2011-09-16 Péter Dusán Ispánovity

In this paper we study the conditional limit theorems for critical continuous-state branching processes with branching mechanism $\psi(\lambda)=\lambda^{1+\alpha}L(1/\lambda)$ where $\alpha\in [0,1]$ and $L$ is slowly varying at $\infty$.…

Probability · Mathematics 2015-06-17 Yan-Xia Ren , Ting Yang , Guo-Huan Zhao

We build a simple model of leveraged asset purchases with margin calls. Investment funds use what is perhaps the most basic financial strategy, called "value investing", i.e. systematically attempting to buy underpriced assets. When funds…

Statistical Finance · Quantitative Finance 2010-01-11 Stefan Thurner , J. Doyne Farmer , John Geanakoplos

We study the volatility of the S&P500 stock index from 1984 to 1996 and find that the volatility distribution can be very well described by a log-normal function. Further, using detrended fluctuation analysis we show that the volatility is…

Statistical Mechanics · Physics 2015-06-25 Pierre Cizeau , Yanhui Liu , Martin Meyer , C. -K. Peng , H. Eugene Stanley