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We model the dynamics of asset prices and associated derivatives by consideration of the dynamics of the conditional probability density process for the value of an asset at some specified time in the future. In the case where the price…

Pricing of Securities · Quantitative Finance 2011-11-14 Damir Filipović , Lane P. Hughston , Andrea Macrina

We analyze waiting times for price changes in a foreign currency exchange rate. Recent empirical studies of high frequency financial data support that trades in financial markets do not follow a Poisson process and the waiting times between…

Physics and Society · Physics 2009-11-11 Naoya Sazuka

Based on the new type of random walk process called the Potentials of Unbalanced Complex Kinetics (PUCK) model, we theoretically show that the price diffusion in large scales is amplified 2/(2 + b) times, where b is the coefficient of…

Physics and Society · Physics 2009-11-13 Takayuki Mizuno , Hideki Takayasu , Misako Takayasu

The goal of developing a firmer theoretical understanding of inhomogenous temporal processes -- in particular, the waiting times in some collective dynamical system -- is attracting significant interest among physicists. Quantifying the…

Statistical Finance · Quantitative Finance 2015-06-12 Guannan Zhao , Mark McDonald , Dan Fenn , Stacy Williams , Neil F. Johnson

We analyze tick data of yen-dollar exchange with a focus on its up and down movement. We show that there exists a rather particular conditional probability structure with such high frequency data. This result provides us with evidence to…

Condensed Matter · Physics 2009-11-07 Toru Ohira , Naoya Sazuka , Kouhei Marumo , Tokiko Shimizu , Misako Takayasu , Hideki Takayasu

Random walks are basic diffusion processes on networks and have applications in, for example, searching, navigation, ranking, and community detection. Recent recognition of the importance of temporal aspects on networks spurred studies of…

Physics and Society · Physics 2015-01-14 Leo Speidel , Renaud Lambiotte , Kazuyuki Aihara , Naoki Masuda

The position density of a "particle" performing a continuous-time quantum walk on the integer lattice, viewed on length scales inversely proportional to the time t, converges (as t tends to infinity) to a probability distribution that…

Quantum Physics · Physics 2013-05-29 Alex D. Gottlieb

In this paper, we consider a type of continuous time random walk model where the jump length is correlated with the waiting time. The asymptotic behaviors of the coupled jump probability density function in the Fourier-Laplace domain are…

Statistical Mechanics · Physics 2015-06-16 Long Shi , Zuguo Yu , Zhi Mao , Aiguo Xiao , Hailan Huang

Continuous time random walks are non-Markovian stochastic processes, which are only partly characterized by single-time probability distributions. We derive a closed evolution equation for joint two-point probability density functions of a…

Statistical Mechanics · Physics 2009-11-13 A. Baule , R. Friedrich

We investigate the hitting times of random walks on graphs, where a hitting time is defined as the number of steps required for a random walker to move from one node to another. While much of the existing literature focuses on calculating…

Probability · Mathematics 2025-11-10 Anuraag Kumar

A few characteristic exponents describing power law behaviors of roughness, coherence and persistence in stochastic time series are compared to each other. Relevant techniques for analyzing such time series are recalled in order to…

Statistical Mechanics · Physics 2007-05-23 M. Ausloos

This paper consider a highly general dissemination model that keeps track of the stochastic evolution of the distribution of wealth over a set of agents. There are two types of events: (i) units of wealth externally arrive, and (ii) units…

Probability · Mathematics 2022-07-12 K. M. D. Chan , M. R. H. Mandjes

This note continues investigation of randomness-type properties emerging in idealized financial markets with continuous price processes. It is shown, without making any probabilistic assumptions, that the strong variation exponent of…

Trading and Market Microstructure · Quantitative Finance 2010-11-25 Vladimir Vovk

In this paper we present an integro-differential diffusion equation for continuous time random walk that is valid for a generic waiting time probability density function. Using this equation we also study diffusion behaviors for a couple of…

Statistical Mechanics · Physics 2015-05-19 Kwok Sau Fa , K. G. Wang

Recently observation of random walks in complex environments like the cell and other glassy systems revealed that the spreading of particles, at its tails, follows a spatial exponential decay instead of the canonical Gaussian. We use the…

Statistical Mechanics · Physics 2022-03-23 Wanli Wang , Eli Barkai , Stanislav Burov

This paper introduces the Attracting Random Walks model, which describes the dynamics of a system of particles on a graph with $n$ vertices. At each step, a single particle moves to an adjacent vertex (or stays at the current one) with…

Probability · Mathematics 2020-06-01 Julia Gaudio , Yury Polyanskiy

We study exploration properties of a random walk on a network. For a fully connected network we find that the problem can be mapped to the well known coupon collector problem, thus allowing us to estimate form of $P(S,t)$: the distribution…

Physics and Society · Physics 2026-04-24 Sarvesh K. Upadhyay , Trifce Sandev , Sanjay Kumar , R. K. Singh

The principle of absence of arbitrage opportunities allows obtaining the distribution of stock price fluctuations by maximizing its information entropy. This leads to a physical description of the underlying dynamics as a random walk…

Statistical Finance · Quantitative Finance 2013-10-31 Rosario Bartiromo

This paper presents necessary and sufficient conditions for on- and off-diagonal transition probability estimates for random walks on weighted graphs. On the integer lattice and on may fractal type graphs both the volume of a ball and the…

Probability · Mathematics 2008-01-17 Andras Telcs

In this paper we define direct product of graphs and give a recipe for obtained probability of observing particle on vertices in the continuous-time classical and quantum random walk. In the recipe, the probability of observing particle on…

Quantum Physics · Physics 2015-05-13 S. Salimi , M. A. Jafarizadeh