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We consider estimation of the spot volatility in a stochastic boundary model with one-sided microstructure noise for high-frequency limit order prices. Based on discrete, noisy observations of an It\^o semimartingale with jumps and general…

Statistics Theory · Mathematics 2024-11-20 Markus Bibinger

Neurophysiologists are nowadays able to record from a large number of extracellular electrodes and to extract, from the raw data, the sequences of action potentials or spikes generated by many neurons. Unfortunately these ''many neurons''…

Applications · Statistics 2026-04-22 Pierre Charitat , Ségolen Geffray , Christophe Pouzat

The availability of large datasets requires an improved view on statistical laws in complex systems, such as Zipf's law of word frequencies, the Gutenberg-Richter law of earthquake magnitudes, or scale-free degree distribution in networks.…

Data Analysis, Statistics and Probability · Physics 2019-04-30 Martin Gerlach , Eduardo G. Altmann

The price of financial assets are, since Bachelier, considered to be described by a (discrete or continuous) time sequence of random variables, i.e a stochastic process. Sharp scaling exponents or unifractal behavior of such processes has…

Statistical Mechanics · Physics 2015-06-25 Marc-Etienne Brachet , Erik Taflin , Jean Marcel Tcheou

We use Fourier analysis to access risk in financial products. With it we analyze price changes of e.g. stocks. Via Fourier analysis we scrutinize quantitatively whether the frequency of change is higher than a change in (conserved) company…

Statistical Finance · Quantitative Finance 2024-08-21 Michael Grabinski , Galiya Klinkova

We introduce a statistical test for simultaneous jumps in the price of a financial asset and its volatility process. The proposed test is based on high-frequency data and is robust to market microstructure frictions. For the test, local…

Statistics Theory · Mathematics 2018-06-12 Markus Bibinger , Lars Winkelmann

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

With the dynamic political and economic environments, the ever-changing stock markets generate large amounts of data daily. Acquiring up-to-date data is crucial to enhancing predictive precision in stock price behavior studies. However,…

Computational Engineering, Finance, and Science · Computer Science 2023-08-28 Arunima Mandal , Yuanhang Shao , Xiuwen Liu

In statistical mechanical investigations on complex networks, it is useful to employ random graphs ensembles as null models, to compare with experimental realizations. Motivated by transcription networks, we present here a simple way to…

Statistical Mechanics · Physics 2009-11-11 F. Bassetti , M. Cosentino Lagomarsino , B. Bassetti , P. Jona

This paper considers binomial approximation of continuous time stochastic processes. It is shown that, under some mild integrability conditions, a process can be approximated in mean square sense and in other strong metrics by binomial…

Computational Finance · Quantitative Finance 2015-02-09 Nikolai Dokuchaev

A non-fungible token (NFT) market is a new trading invention based on the blockchain technology which parallels the cryptocurrency market. In the present work we study capitalization, floor price, the number of transactions, the…

Computational Finance · Quantitative Finance 2024-01-17 Paweł Szydło , Marcin Wątorek , Jarosław Kwapień , Stanisław Drożdż

Digital currencies have become popular in the last decade due to their non-dependency and decentralized nature. The price of these currencies has seen a lot of fluctuations at times, which has increased the need for prediction. As their…

Statistical Finance · Quantitative Finance 2025-01-24 Ramin Mousa , Meysam Afrookhteh , Hooman Khaloo , Amir Ali Bengari , Gholamreza Heidary

The methodology presented provides a quantitative way to characterize investor behavior and price dynamics within a particular asset class and time period. The methodology is applied to a data set consisting of over 250,000 data points of…

General Finance · Quantitative Finance 2020-04-22 Gunduz Caginalp , Mark DeSantis

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

The manipulation of LIBOR by a group of banks became one of the major blows to the remaining confidence in financial industry. Yet, despite an enormous amount of popular literature on the subject, rigorous time-series studies are few. In my…

Statistical Finance · Quantitative Finance 2020-04-07 Peter B. Lerner

In this paper, we focus on the estimation of historical volatility of asset prices from high-frequency data. Stochastic volatility models pose a major statistical challenge: since in reality historical volatility is not observable, its…

Computational Finance · Quantitative Finance 2023-02-27 Camilla Damian , Rüdiger Frey

Topological Data Analysis (TDA) is increasingly crucial in investigating the shape of complex data structures across scientific fields, particularly in neuroscience and finance. This study delves into persistent homology, a TDA component…

Physics and Society · Physics 2024-09-17 Roel Gisolf , Fernando A. N. Santos , Felix Wierstra

The new digital revolution of big data is deeply changing our capability of understanding society and forecasting the outcome of many social and economic systems. Unfortunately, information can be very heterogeneous in the importance,…

Statistical Finance · Quantitative Finance 2015-12-16 Gabriele Ranco , Ilaria Bordino , Giacomo Bormetti , Guido Caldarelli , Fabrizio Lillo , Michele Treccani

Binary search trees (BST) are a popular type of data structure when dealing with ordered data. Indeed, they enable one to access and modify data efficiently, with their height corresponding to the worst retrieval time. From a probabilistic…

Probability · Mathematics 2025-01-28 Benoît Corsini , Victor Dubach , Valentin Féray

We develop a theory of securities price formation and dynamics based on quantum approach and without presuming any similarities with quantum mechanics. Disorder introduced by trading environment leads to probability distribution of returns…

Trading and Market Microstructure · Quantitative Finance 2016-05-19 Jack Sarkissian