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In multi-period stochastic optimization problems, the future optimal decision is a random variable whose distribution depends on the parameters of the optimization problem. We analyze how the expected value of this random variable changes…

Optimization and Control · Mathematics 2020-01-28 Bar Light

This paper tries to address the problem of stock market prediction leveraging artificial intelligence (AI) strategies. The stock market prediction can be modeled based on two principal analyses called technical and fundamental. In the…

Statistical Finance · Quantitative Finance 2021-07-05 Sohrab Mokhtari , Kang K. Yen , Jin Liu

Predicting stock market movements is a well-known problem of interest. Now-a-days social media is perfectly representing the public sentiment and opinion about current events. Especially, twitter has attracted a lot of attention from…

Information Retrieval · Computer Science 2016-10-31 Venkata Sasank Pagolu , Kamal Nayan Reddy Challa , Ganapati Panda , Babita Majhi

The node2vec random walk is a non-Markovian random walk on the vertex set of a graph, widely used for network embedding and exploration. This random walk model is defined in terms of three parameters which control the probability of,…

Probability · Mathematics 2026-04-16 Luca Avena , Gianmarco Bet , Lars Schroeder , Clara Stegehuis

The symbolic dynamics technique is well-known for low-dimensional dynamical systems and chaotic maps, and lies at the roots of the thermodynamic formalism of dynamical systems. Here we show that this technique can also be successfully…

Chaotic Dynamics · Physics 2017-08-02 Dan Xu , Christian Beck

We consider a directed version of the classical Stochastic Block Model with $m\ge 2$ communities and a parameter $\alpha$ controlling the inter-community connectivity. We show that, depending on the scaling of $\alpha$, the mixing time of…

Probability · Mathematics 2026-01-30 Alessandra Bianchi , Giacomo Passuello , Matteo Quattropani

We propose a simple model for the behaviour of longterm investors on a stock market, consisting of three particles, which represent the current price of the stock and the opinion of the buyers, respectively sellers, about the right trading…

Trading and Market Microstructure · Quantitative Finance 2009-04-27 Alexander Weiss

This paper investigates optimal portfolio strategies in a market where the drift is driven by an unobserved Markov chain. Information on the state of this chain is obtained from stock prices and expert opinions in the form of signals at…

Portfolio Management · Quantitative Finance 2016-02-03 Rüdiger Frey , Abdelali Gabih , Ralf Wunderlich

We propose the point process model as the Poissonian-like stochastic sequence with slowly diffusing mean rate and adjust the parameters of the model to the empirical data of trading activity for 26 stocks traded on NYSE. The proposed scaled…

Trading and Market Microstructure · Quantitative Finance 2009-11-13 V. Gontis , B. Kaulakys , J. Ruseckas

Collective motion is an ubiquitous phenomenon in nature, inspiring engineers, physicists and mathematicians to develop mathematical models and bio-inspired designs. Collective motion at small to medium group sizes ($\sim$10-1000…

Machine Learning · Computer Science 2024-01-19 Utkarsh Pratiush , Arshed Nabeel , Vishwesha Guttal , Prathosh AP

We investigate the daily correlation present among market indices of stock exchanges located all over the world in the time period Jan 1996 - Jul 2009. We discover that the correlation among market indices presents both a fast and a slow…

Statistical Finance · Quantitative Finance 2011-08-16 Dong-Ming Song , Michele Tumminello , Wei-Xing Zhou , Rosario N. Mantegna

We consider random walks in dynamic random environments and propose a criterion which, if satisfied, allows to decompose the random walk trajectory into i.i.d. increments, and ultimately to prove limit theorems. The criterion involves the…

Probability · Mathematics 2024-09-20 Julien Allasia , Rangel Baldasso , Oriane Blondel , Augusto Teixeira

We study the asymptotic behavior of a Markov chain on $\mathbb{Z}^2$ that corresponds to the two-dimensional marginals of a reinforcement process on $\mathbb{Z}^{\mathbb{N}}$. Three distinct asymptotic regimes are identified, depending on…

Probability · Mathematics 2007-05-23 Jean Bérard

We introduce a statistical mechanics formalism for the study of constrained graph evolution as a Markovian stochastic process, in analogy with that available for spin systems, deriving its basic properties and highlighting the role of the…

Disordered Systems and Neural Networks · Physics 2015-05-13 A. C. C. Coolen , A. De Martino , A. Annibale

We consider the problem of dynamic buying and selling of shares from a collection of $N$ stocks with random price fluctuations. To limit investment risk, we place an upper bound on the total number of shares kept at any time. Assuming that…

Portfolio Management · Quantitative Finance 2009-09-23 Michael J. Neely

Mathematical models of motility are often based on random-walk descriptions of discrete individuals that can move according to certain rules. It is usually the case that large masses concentrated in small regions of space have a great…

Physics and Society · Physics 2022-11-23 Carles Falcó

This article surveys recent advancements of strategy designs for persistent robotic surveillance tasks with the focus on stochastic approaches. The problem describes how mobile robots stochastically patrol a graph in an efficient way where…

Optimization and Control · Mathematics 2020-08-21 Xiaoming Duan , Francesco Bullo

In Part II of this paper, we concentrate our analysis on the price dynamical model with the moving average rules developed in Part I of this paper. By decomposing the excessive demand function, we reveal that it is the interplay between…

Trading and Market Microstructure · Quantitative Finance 2016-11-18 Li-Xin Wang

Accurately analyzing graph properties of social networks is a challenging task because of access limitations to the graph data. To address this challenge, several algorithms to obtain unbiased estimates of properties from few samples via a…

Social and Information Networks · Computer Science 2020-07-14 Kazuki Nakajima , Kazuyuki Shudo

In the study of dynamical processes on networks, there has been intense focus on network structure -- i.e., the arrangement of edges and their associated weights -- but the effects of the temporal patterns of edges remains poorly…

Physics and Society · Physics 2015-06-16 Till Hoffmann , Mason A. Porter , Renaud Lambiotte