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The paper provides a new explanation of the low-volatility anomaly. We use the Adaptive Multi-Factor (AMF) model estimated by the Groupwise Interpretable Basis Selection (GIBS) algorithm to find those basis assets significantly related to…

Statistical Finance · Quantitative Finance 2021-04-27 Robert A. Jarrow , Rinald Murataj , Martin T. Wells , Liao Zhu

The Riemann walk is the lattice version of the Levy flight. For the one-dimensional Riemann walk of Levy exponent 0<\alpha<2 we study the statistics of the support, i.e. the set of visited sites, after t steps. We consider a wide class of…

Statistical Mechanics · Physics 2010-08-26 A. M. Mariz , F. van Wijland , H. J. Hilhorst , S. R. Gomes Junior , C. Tsallis

This article includes a short survey of selected averaging and dimension reduction techniques for deterministic fast-slow systems. This survey includes, among others, classical techniques, such as the WKB approximation or the averaging…

Mathematical Physics · Physics 2022-11-21 Matthias Klar , Karsten Matthies , Johannes Zimmer

High orders of perturbation theory can be calculated by the Lipatov method, whereby they are determined by saddle-point configurations (instantons) of the corresponding functional integrals. For most field theories, the Lipatov asymptotics…

High Energy Physics - Phenomenology · Physics 2009-10-31 I. M. Suslov

A pricing principle is introduced for non-attainable $q$-exponential bounded contingent claims in an incomplete Brownian motion market setting. The buyer evaluates the contingent claim under the ``distorted Radon-Nikodym derivative'' and…

Mathematical Finance · Quantitative Finance 2022-10-11 Dejian Tian

In this paper, we present the asymptotic distribution of M-estimators for parameters in non-stationary AR(p) processes. The innovations are assumed to be in the domain of attraction of a stable law with index $0<\alpha\le2$. In particular,…

Applications · Statistics 2016-12-13 Maryam Sohrabi , Mahmoud Zarepour

In models like axion monodromy, temporal features during inflation which are not associated with its ending can produce scalar, and to a lesser extent, tensor power spectra where deviations from scale-free power law spectra can be as large…

Cosmology and Nongalactic Astrophysics · Physics 2015-08-31 Hayato Motohashi , Wayne Hu

We consider a non-Gaussian option pricing model, into which the underlying log-price is assumed to be driven by an $\alpha$-stable distribution. We remove the a priori divergence of the model by introducing a Mellin regularization for the…

Pricing of Securities · Quantitative Finance 2016-11-28 Jean-Philippe Aguilar , Cyril Coste , Hagen Kleinert , Jan Korbel

We establish asymptotic properties of $M$-estimators, defined in terms of a contrast function and observations from a continuous-time locally stationary process. Using the stationary approximation of the sequence, $\theta$-weak dependence,…

Statistics Theory · Mathematics 2021-05-11 Bennet Ströh

This paper proposes an alternative to the classical price-adjustment mechanism (called "t\^{a}tonnement" after Walras) that is second-order in time. The proposed mechanism, an analogue to the damped harmonic oscillator, provides a dynamic…

General Finance · Quantitative Finance 2011-08-25 Eric Kemp-Benedict

Estimation of the Average Treatment Effect (ATE) is a core problem in causal inference with strong connections to Off-Policy Evaluation in Reinforcement Learning. This paper considers the problem of adaptively selecting the treatment…

Machine Learning · Statistics 2024-11-22 Ojash Neopane , Aaditya Ramdas , Aarti Singh

Let $S_{n}$ be a sum of independent identically distribution random variables with finite first moment and $h_{M}$ be a call function defined by $g_{M}(x)=\max\{x-M,0\}$ for $x\in\mathbb{R}$, $M>0$. In this paper, we assume the random…

Probability · Mathematics 2024-11-26 Peng Chen , Tianyi Qi , Ting Zhang

A charge-density-wave (CDW) is characterized by a dynamical order parameter consisting of a time-dependent amplitude and phase, which manifest as optically-active collective modes of the CDW phase. Studying the behaviour of such collective…

We derive the atomistic representations of the elastic tensors appearing in the linearized theory of first strain-gradient elasticity for an arbitrary multi-lattice. In addition to the classical (2nd-Piola) stress and elastic moduli…

Materials Science · Physics 2016-12-21 Nikhil Chandra Admal , Jaime Marian , Giacomo Po

We investigate the observational viability of a class of $\alpha$-attractors inflationary models in light of the most recent Cosmic Microwave Background (CMB) and Large-Scale Structure (LSS) data. By considering a double-well potential we…

Cosmology and Nongalactic Astrophysics · Physics 2021-03-04 J. G. Rodrigues , S. Santos da Costa , J. S. Alcaniz

Let $X=\{X_{t},t\in R_{+}\}$ be a symmetric L\'{e}vy process with local time $\{L^{x}_{t} ; (x,t)\in R^{1}\times R^{1}_{+}\}$. When the L\'{e}vy exponent $\psi(\la)$ is regularly varying at zero with index $1<\beta\leq 2$, and satisfies…

Probability · Mathematics 2009-09-08 Michael B. Marcus , Jay Rosen

In this paper we prove an approximate formula expressed in terms of elementary functions for the implied volatility in the Heston model. The formula consists of the constant and first order terms in the large maturity expansion of the…

Pricing of Securities · Quantitative Finance 2015-05-14 Martin Forde , Antoine Jacquier , Aleksandar Mijatovic

In this article we review recent generalisations of the central limit theorem for the sum of specially correlated (or q-independent) variables, focusing on q greater or equal than 1. Specifically, this kind of correlation turns the…

Statistical Mechanics · Physics 2007-12-16 Silvio M. Duarte Queiros , Constantino Tsallis

We investigate, by numerical simulations on a lattice, the $\theta$-dependence of 2$d$ $CP^{N-1}$ models for a range of $N$ going from 9 to 31, combining imaginary $\theta$ and simulated tempering techniques to improve the signal-to-noise…

High Energy Physics - Lattice · Physics 2019-01-30 Claudio Bonanno , Claudio Bonati , Massimo D'Elia

We consider a class of wave equations with constant damping and polynomial nonlinearities that are perturbed by small, multiplicative, space-time white noise. The equations are defined on a one-dimensional bounded interval with Dirichlet…

Probability · Mathematics 2025-02-05 Ioannis Gasteratos , Michael Salins , Konstantinos Spiliopoulos