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Index tracking, also known as passive investing, has gained significant traction in financial markets due to its cost-effective and efficient approach to replicating the performance of a specific market index. This review paper provides a…

Portfolio Management · Quantitative Finance 2026-01-08 Vrinda Dhingra , Amita Sharma , Anubha Goel

We establish the limiting spectral distribution of Kendall's correlation matrices in the moderate high-dimensional regime where the dimension grows slower than the sample size. Our framework allows observations to be independent but not…

Statistics Theory · Mathematics 2026-03-10 Raunak Shevade , Monika Bhattacharjee

This paper studies model selection consistency for high dimensional sparse regression when data exhibits both cross-sectional and serial dependency. Most commonly-used model selection methods fail to consistently recover the true model when…

Methodology · Statistics 2018-09-12 Jianqing Fan , Yuan Ke , Kaizheng Wang

While simulations have been utilized in diverse domains, such as urban growth modeling, market dynamics modeling, etc; some of these applications may require validations based upon some real-world observations modeled in the simulation, as…

Multiagent Systems · Computer Science 2019-08-12 Dongjun Kim , Tae-Sub Yun , Il-Chul Moon

Instabilities and pattern formation is the rule in nonequilibrium systems. Selection of a persistent lengthscale, or coarsening (increase of the lengthscale with time) are the two major alternatives. When and under which conditions one…

Statistical Mechanics · Physics 2010-01-25 Chaouqi Misbah , Paolo Politi

Understanding the dependence relationship of credit spreads of corporate bonds is important for risk management. Vine copula models with tail dependence are used to analyze a credit spread dataset of Chinese corporate bonds, understand the…

Methodology · Statistics 2021-11-16 Shenyi Pan , Harry Joe , Guofu Li

To disentangle the complex non-stationary dependence structure of precipitation extremes over the entire contiguous U.S., we propose a flexible local approach based on factor copula models. Our sub-asymptotic spatial modeling framework…

Applications · Statistics 2019-03-26 Daniela Castro-Camilo , Raphaël Huser

We propose a new matrix pencil based approach for design of state-feedback and output-feedback stabilizing controllers for a general class of uncertain nonlinear strict-feedback-like systems. While the dynamic controller structure is based…

Optimization and Control · Mathematics 2022-06-08 Prashanth Krishnamurthy , Farshad Khorrami

We pose the estimation and predictability of stock market performance. Three cases are taken: US, Japan, Germany, the monthly index of the value of realized investment in stocks, prices plus the value of dividend payments (OECD data). Once…

General Economics · Economics 2023-05-11 Ignacio Escanuela Romana , Clara Escanuela Nieves

The main focus of this work is to understand the dynamics of non regulated markets. The present model can describe the dynamics of any market where the pricing is based on supply and demand. It will be applied here, as an example, for the…

adap-org · Physics 2007-05-23 Andreas Schaale

The Gaussian copula is a powerful tool that has been widely used to model spatial and/or temporal correlated data with arbitrary marginal distributions. However, this kind of model can potentially be too restrictive since it expresses a…

Methodology · Statistics 2023-05-30 Moreno Bevilacqua , Eloy Alvarado , Christian Caamaño-Carrillo

The dynamics of coupled 2D chaotic maps with time-delay on a scalefree-tree is studied, with different types of the collective behaviors already been reported for various values of coupling strength [1]. In this work we focus on the…

Statistical Mechanics · Physics 2008-05-22 Zoran Levnajić

We develop a methodology for index tracking and risk exposure control using financial derivatives. Under a continuous-time diffusion framework for price evolution, we present a pathwise approach to construct dynamic portfolios of…

Mathematical Finance · Quantitative Finance 2017-05-31 Tim Leung , Brian Ward

Models of complex dynamical systems like the Earth's climate often involve large numbers of uncertain parameters. Comprehensive exploration of the parameter space is typically prohibitive due to excessive computational costs. Systematic…

Atmospheric and Oceanic Physics · Physics 2026-03-27 Daniel Pals , Sebastian Bathiany , Richard Wood , Joel Kuettel , Niklas Boers

There are many natural, physical, and biological systems that exhibit multiple time scales. For example, the dynamics of a population of ticks can be described in continuous time during their individual life cycle yet discrete time is used…

Dynamical Systems · Mathematics 2009-07-10 Raquel M. Lopez , Sergei K. Suslov , Erika T. Camacho

A frequent task in exploratory data analysis consists in examining pairwise dependencies between data variables. Popular approaches include visualizing correlation or scatter plot matrices. However, both methods can be misleading. The…

Applications · Statistics 2022-04-04 Arturo Erdely , Manuel Rubio-Sanchez

We consider theories with time-dependent Hamiltonians which alternate between being bounded and unbounded from below. For appropriate frequencies dynamical stabilization can occur rendering the effective potential of the system stable. We…

High Energy Physics - Theory · Physics 2012-08-13 Roberto Auzzi , Shmuel Elitzur , Sven Bjarke Gudnason , Eliezer Rabinovici

Discrimination between non-stationarity and long-range dependency is a difficult and long-standing issue in modelling financial time series. This paper uses an adaptive spectral technique which jointly models the non-stationarity and…

Statistical Finance · Quantitative Finance 2019-02-12 Nick James , Roman Marchant , Richard Gerlach , Sally Cripps

The pricing of derivatives tied to baskets of assets demands a sophisticated framework that aligns with the available market information to capture the intricate non-linear dependency structure among the assets. We describe the dynamics of…

Computational Finance · Quantitative Finance 2025-10-13 Nicola F. Zaugg , Lech A. Grzelak

We propose a new procedure to monitor and forecast the onset of transitions in high dimensional complex systems. We describe our procedure by an application to the Tangled Nature model of evolutionary ecology. The quasi-stable…

Adaptation and Self-Organizing Systems · Physics 2014-12-31 Andrea Cairoli , Duccio Piovani , Henrik Jeldtoft Jensen
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