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We present an empirical study of the subordination hypothesis for a stochastic time series of a stock price. The fluctuating rate of trading is identified with the stochastic variance of the stock price, as in the continuous-time random…

Physics and Society · Physics 2008-12-02 A. Christian Silva , Victor M. Yakovenko

Data normalization is one of the most important preprocessing steps when building a machine learning model, especially when the model of interest is a deep neural network. This is because deep neural network optimized with stochastic…

Statistical Finance · Quantitative Finance 2021-09-03 Dat Thanh Tran , Juho Kanniainen , Moncef Gabbouj , Alexandros Iosifidis

In setting up a stochastic description of the time evolution of a financial index, the challenge consists in devising a model compatible with all stylized facts emerging from the analysis of financial time series and providing a reliable…

Statistical Finance · Quantitative Finance 2009-11-13 Fulvio Baldovin , Attilio L. Stella

Prices in financial markets exhibit extreme jumps far more often than can be accounted for by external news. Further, magnitudes of price changes are correlated over long times. These so called stylized facts are quantified by scaling laws…

Trading and Market Microstructure · Quantitative Finance 2016-05-04 Felix Patzelt , Klaus Pawelzik

When the number of subjects, $n$, is large, paired comparisons are often sparse. Here, we study statistical inference in a class of paired comparison models parameterized by a set of merit parameters, under an Erd\"{o}s--R\'{e}nyi…

Statistics Theory · Mathematics 2025-11-17 Qiuping Wang , Lu Pan , Ting Yan

This paper proposes an algorithm based on a staged sliding window Transformer architecture to detect abnormal behaviors in the microstructure of the foreign exchange market, focusing on high-frequency EUR/USD trading data. The method…

Machine Learning · Computer Science 2025-04-02 Qiuliuyang Bao , Jiawei Wang , Hao Gong , Yiwei Zhang , Xiaojun Guo , Hanrui Feng

Linear models are foundational tools in statistics and ubiquitous across the applied sciences. However, conventional statistical inference -- such as $t$-tests and $F$-tests -- are only valid at fixed sample sizes, making them unsuitable…

Methodology · Statistics 2025-07-08 Michael Lindon , Dae Woong Ham , Martin Tingley , Iavor Bojinov

We introduce a novel uncertainty principle for generalized graph signals that extends classical time-frequency and graph uncertainty principles into a unified framework. By defining joint vertex-time and spectral-frequency spreads, we…

Signal Processing · Electrical Eng. & Systems 2024-09-09 Yanan Zhao , Xingchao Jian , Feng Ji , Wee Peng Tay , Antonio Ortega

In recent years, model collapse has become a critical issue in language model training, making it essential to understand the underlying mechanisms driving this phenomenon. In this paper, we investigate recursive parametric model training…

Machine Learning · Statistics 2025-05-23 Shirong Xu , Hengzhi He , Guang Cheng

We present cross and time series analysis of price fluctuations in the U.S. Treasury fixed income market. By means of techniques borrowed from statistical physics we show that the correlation among bonds depends strongly on the maturity and…

Statistical Mechanics · Physics 2008-12-10 M. Bernaschi , L. Grilli , L. Marangio , S. Succi , D. Vergni

We develop a general framework for estimating function-valued parameters under equality or inequality constraints in infinite-dimensional statistical models. Such constrained learning problems are common across many areas of statistics and…

Machine Learning · Statistics 2025-07-22 Razieh Nabi , Nima S. Hejazi , Mark J. van der Laan , David Benkeser

Detailed study of multifractal characteristics of the financial time series of asset values and of its returns is performed using a collection of the high frequency Deutsche Aktienindex data. The tail index ($\alpha$), the Renyi exponents…

Statistical Mechanics · Physics 2009-11-07 A. Z. Gorski , S. Drozdz , J. Speth

Empirical process theory for i.i.d. observations has emerged as a ubiquitous tool for understanding the generalization properties of various statistical problems. However, in many applications where the data exhibit temporal dependencies…

Statistics Theory · Mathematics 2024-01-18 Nabarun Deb , Debarghya Mukherjee

The distribution of price returns for a class of uncorrelated diffusive dynamics is considered. The basic assumptions are (1) that there is a "consensus" value associated with a stock, and (2) that the rate of diffusion depends on the…

Other Condensed Matter · Physics 2008-12-02 A. L. Alejandro-Quinones , K. E. Bassler , M. Field , J. L. McCauley , M. Nicol , I. Timofeyef , A. Torok , G. H. Gunaratne

Data dependencies have been extended to graphs to characterize topological and value constraints. Existing data dependencies are defined to capture inconsistencies in static graphs. Nevertheless, inconsistencies may occur over evolving…

Databases · Computer Science 2022-07-27 Morteza Alipourlangouri , Adam Mansfield , Fei Chiang , Yinghui Wu

We extend the now classic structural credit modeling approach of Black and Cox to a class of "two-factor" models that unify equity securities such as options written on the stock price, and credit products like bonds and credit default…

Pricing of Securities · Quantitative Finance 2011-10-27 Thomas R. Hurd , Zhuowei Zhou

We develop inference procedures robust to general forms of weak dependence. The procedures utilize test statistics constructed by resampling in a manner that does not depend on the unknown correlation structure of the data. We prove that…

Econometrics · Economics 2021-08-26 Michael P. Leung

The prediction of a binary sequence is a classic example of online machine learning. We like to call it the 'stock prediction problem,' viewing the sequence as the price history of a stock that goes up or down one unit at each time step. In…

Optimization and Control · Mathematics 2020-07-28 Nadejda Drenska , Robert V. Kohn

We propose a unified framework that employs variational inference (VI) with (conditional) normalizing flows (NFs) to train both between-model and within-model proposals for reversible jump Markov chain Monte Carlo, enabling efficient…

Machine Learning · Statistics 2026-02-05 Pingping Yin , Xiyun Jiao

This thesis develops exact analytical tools to study strongly correlated stochastic systems, with a focus on extreme value statistics, gap statistics, and full counting statistics in multi-particle processes. A central contribution is the…

Statistical Mechanics · Physics 2025-08-19 Marco Biroli