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Estimating volatility from recent high frequency data, we revisit the question of the smoothness of the volatility process. Our main result is that log-volatility behaves essentially as a fractional Brownian motion with Hurst exponent H of…

Statistical Finance · Quantitative Finance 2014-10-14 Jim Gatheral , Thibault Jaisson , Mathieu Rosenbaum

We introduce and establish the main properties of QHawkes ("Quadratic" Hawkes) models. QHawkes models generalize the Hawkes price models introduced in E. Bacry et al. (2014), by allowing all feedback effects in the jump intensity that are…

Trading and Market Microstructure · Quantitative Finance 2015-09-28 Pierre Blanc , Jonathan Donier , Jean-Philippe Bouchaud

This paper extends the existing fractional Hawkes process to better model mainshock-aftershock sequences of earthquakes. The fractional Hawkes process is a self-exciting point process model with temporal decay kernel being a Mittag-Leffler…

Applications · Statistics 2026-04-13 Louis Davis , Boris Baeumer , Ting Wang

We show, by direct numerical simulations, that heavy inertial particles (characterized by Stokes number $\St$) in inhomogeneously forced statistically stationary isothermal turbulent flows cluster at the minima of mean-square turbulent…

Fluid Dynamics · Physics 2018-05-24 Dhrubaditya Mitra , Nils Erland L. Haugen , Igor Rogachevskii

This article addresses the problem of functional supervised classification of Cox process trajectories, whose random intensity is driven by some exogenous random covariable. The classification task is achieved through a regularized convex…

Statistics Theory · Mathematics 2014-10-16 Gérard Biau , Benoît Cadre , Quentin Paris

Given a stationary point process, an intensity burst is defined as a short time period during which the number of counts is larger than the typical count rate. It might signal a local non-stationarity or the presence of an external…

Trading and Market Microstructure · Quantitative Finance 2018-04-04 Marcello Rambaldi , Vladimir Filimonov , Fabrizio Lillo

Multistable processes, that is, processes which are, at each "time", tangent to a stable process, but where the index of stability varies along the path, have been recently introduced as models for phenomena where the intensity of jumps is…

Probability · Mathematics 2010-06-01 Ronan Le Guével , Jacques Lévy-Véhel

We present a function-valued stochastic volatility model designed to capture the continuous-time evolution of forward curves in fixed-income or commodity markets. The dynamics of the (logarithmic) forward curves are defined by a…

Mathematical Finance · Quantitative Finance 2024-09-23 Sven Karbach

In this paper, we use the Hawkes process to model the sequence of failure, i.e., events of compressor station and conduct survival analysis on various failure events of the compressor station. However, until now, nearly all relevant…

Machine Learning · Computer Science 2021-12-28 Lu-ning Zhang , Jian-wei Liu , Xin Zuo

Hawkes processes are a self-exciting stochastic process used to describe phenomena whereby past events increase the probability of the occurrence of future events. This work presents a flexible approach for modelling a variant of these,…

Methodology · Statistics 2022-08-08 Raiha Browning , Judith Rousseau , Kerrie Mengersen

We propose a new class of rough stochastic volatility models obtained by modulating the power-law kernel defining the fractional Brownian motion (fBm) by a logarithmic term, such that the kernel retains square integrability even in the…

Mathematical Finance · Quantitative Finance 2021-05-04 Christian Bayer , Fabian Andsem Harang , Paolo Pigato

An extension of the Hawkes process, the Marked Hawkes process distinguishes itself by featuring variable jump size across each event, in contrast to the constant jump size observed in a Hawkes process without marks. While extensive…

Machine Learning · Statistics 2024-02-08 Sobin Joseph , Shashi Jain

We present a tractable non-independent increment process which provides a high modeling flexibility. The process lies on an extension of the so-called Harris chains to continuous time being stationary and Feller. We exhibit constructions,…

Applications · Statistics 2016-05-19 Michelle Anzarut , Ramses H. Mena

Motivated by empirical evidence for rough volatility models, this paper investigates continuous-time mean-variance (MV) portfolio selection under the Volterra Heston model. Due to the non-Markovian and non-semimartingale nature of the…

Portfolio Management · Quantitative Finance 2020-01-30 Bingyan Han , Hoi Ying Wong

The analytical tractability of affine (short rate) models, such as the Vasicek and the Cox-Ingersoll-Ross models, has made them a popular choice for modelling the dynamics of interest rates. However, in order to account properly for the…

Mathematical Finance · Quantitative Finance 2016-09-08 Philipp Harms , David Stefanovits , Josef Teichmann , Mario Wüthrich

We present a numerical study of a model of pattern formation following a convective instability in a non-Boussinesq fluid. It is shown that many of the features observed in convection experiments conducted on $CO_{2}$ gas can be reproduced…

Condensed Matter · Physics 2009-10-22 Hao-wen Xi , Jorge Vinals , J. D. Gunton

Hawkes processes are a class of point processes that have the ability to model the self- and mutual-exciting phenomena. Although the classic Hawkes processes cover a wide range of applications, their expressive ability is limited due to…

Machine Learning · Computer Science 2021-06-10 Feng Zhou , Quyu Kong , Yixuan Zhang , Cheng Feng , Jun Zhu

In classical Hawkes process, the baseline intensity and triggering kernel are assumed to be a constant and parametric function respectively, which limits the model flexibility. To generalize it, we present a fully Bayesian nonparametric…

Machine Learning · Computer Science 2019-10-30 Feng Zhou , Zhidong Li , Xuhui Fan , Yang Wang , Arcot Sowmya , Fang Chen

In this paper, we propose a stochastic process, which is a Cox-Ingersoll-Ross process with Hawkes jumps. It can be seen as a generalization of the classical Cox-Ingersoll-Ross process and the classical Hawkes process with exponential…

Probability · Mathematics 2014-10-16 Lingjiong Zhu

Transport coefficients in highly ionised plasmas like the intra-cluster medium (ICM) are still ill-constrained. They influence various processes, among them the mixing at shear flow interfaces due to the Kelvin-Helmholtz instability (KHI).…

Cosmology and Nongalactic Astrophysics · Physics 2018-01-17 E. Roediger , R. P. Kraft , P. Nulsen , E. Churazov , W. Forman , M. Brueggen , R. Kokotanekova