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We explore a stochastic model that enables capturing external influences in two specific ways. The model allows for the expression of uncertainty in the parametrisation of the stochastic dynamics and incorporates patterns to account for…

证券定价 · 定量金融 2024-04-11 Felix L. Wolf , Griselda Deelstra , Lech A. Grzelak

Long memory in the sense of slowly decaying autocorrelations is a stylized fact in many time series from economics and finance. The fractionally integrated process is the workhorse model for the analysis of these time series. Nevertheless,…

计量经济学 · 经济学 2023-09-22 Uwe Hassler , Marc-Oliver Pohle

There are several approaches to modeling and forecasting time series as applied to prices of commodities and financial assets. One of the approaches is to model the price as a non-stationary time series process with heteroscedastic…

统计金融 · 定量金融 2024-07-01 Andrei Renatovich Batyrov

This manuscript reports a stochastic dynamical scenario whose associated stationary probability density function is exactly a previously proposed one to adjust high-frequency traded volume distributions. This dynamical conjecture,…

统计力学 · 物理学 2009-11-11 Silvio M. Duarte Queiros

This paper studies sequence modeling for prediction tasks with long range dependencies. We propose a new formulation for state space models (SSMs) based on learning linear dynamical systems with the spectral filtering algorithm (Hazan et…

机器学习 · 计算机科学 2024-07-12 Naman Agarwal , Daniel Suo , Xinyi Chen , Elad Hazan

Proceeding from the concept of rational expectations, a new dynamic model of supply and demand in a single market with one supplier, one buyer, and one kind of commodity is developed. Unlike the cob-web dynamic theories with adaptive…

综合物理 · 物理学 2007-05-23 V. Granik , A. Granik

Mathematical models for complex systems are often accompanied with uncertainties. The goal of this paper is to extract a stochastic differential equation governing model with observation on stationary probability distributions. We develop a…

动力系统 · 数学 2023-04-05 Xiaoli Chen , Hui Wang , Jinqiao Duan

We develop a theoretical trading conditioning model subject to price volatility and return information in terms of market psychological behavior, based on analytical transaction volume-price probability wave distributions in which we use…

交易与市场微观结构 · 定量金融 2010-02-09 Leilei Shi , Yiwen Wang , Ding Chen , Liyan Han , Yan Piao , Chengling Gou

This paper revisits the definition of linear time-invariant (LTI) stochastic process within a behavioral systems framework. Building on [Willems, 2013], we derive a canonical representation of an LTI stochastic process and a physically…

系统与控制 · 计算机科学 2017-04-10 Giacomo Baggio , Rodolphe Sepulchre

We consider two kinds of stochastic volatility models. Both kinds of models contain a stationary volatility process, the density of which, at a fixed instant in time, we aim to estimate. We discuss discrete time models where for instance a…

统计理论 · 数学 2014-07-15 Bert van Es , Peter Spreij , Harry van Zanten

HYGARCH process is the commonly used long memory process in modeling the long-rang dependence in volatility. Financial time series are characterized by transition between phases of different volatility levels. The smooth transition HYGARCH…

统计计算 · 统计学 2017-01-24 Ferdous Mohammadi , Saeid Rezakhah

We investigate Wiener-transformable markets, where the driving process is given by an adapted transformation of a Wiener process. This includes processes with long memory, like fractional Brownian motion and related processes, and, in…

概率论 · 数学 2018-08-30 Elena Boguslavskaya , Yuliya Mishura , Georgiy Shevchenko

We consider Stochastic Volatility processes with heavy tails and possible long memory in volatility. We study the limiting conditional distribution of future events given that some present or past event was extreme (i.e. above a level which…

统计理论 · 数学 2011-08-17 Rafał Kulik , Philippe Soulier

The recent interest in human dynamics has led researchers to investigate the stochastic processes that explain human behaviour in various contexts. Here we propose a generative model to capture the dynamics of survival analysis,…

物理与社会 · 物理学 2015-09-30 Trevor Fenner , Mark Levene , George Loizou

Markov models are often used to capture the temporal patterns of sequential data for statistical learning applications. While the Hidden Markov modeling-based learning mechanisms are well studied in literature, we analyze a…

机器学习 · 统计学 2021-03-25 Devesh K. Jha

Identifying the right tools to express the stochastic aspects of neural activity has proven to be one of the biggest challenges in computational neuroscience. Even if there is no definitive answer to this issue, the most common procedure to…

神经元与认知 · 定量生物学 2016-02-12 Grégory Dumont , Jacques Henry , Carmen Oana Tarniceriu

We consider a model of stochastic volatility which combines features of the multiplicative model for large volatilities and of the Heston model for small volatilities. The steady-state distribution in this model is a Beta Prime and is…

数理金融 · 定量金融 2024-04-15 M. Dashti Moghaddam , R. A. Serota

We propose a stochastic process driven by the memory effect with novel distributions which include both exponential and leptokurtic heavy-tailed distributions. A class of the distributions is analytically derived from the continuum limit of…

统计理论 · 数学 2012-03-27 Jongwook Kim , Teppei Okumura

From a continuous-time long memory stochastic process, a discrete-time randomly sampled one is drawn. We investigate the second-order properties of this process and establish some time-and frequency-domain asymptotic results. We mainly…

统计理论 · 数学 2021-10-12 Mohamedou Ould Haye , Anne Philippe , Caroline Robet

Stochastic volatility models describe asset prices $S_t$ as driven by an unobserved process capturing the random dynamics of volatility $\sigma_t$. Here, we quantify how much information about $\sigma_t$ can be inferred from asset prices…

统计金融 · 定量金融 2015-12-29 Nils Bertschinger , Oliver Pfante