Singular paths spaces and applications

Fuente: arXiv
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Main Authors: Bellingeri, Carlo, Friz, Peter K., Gerencsér, Máté
Format: Preprint
Published: 2020
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_version_ 1866917610809982976
author Bellingeri, Carlo
Friz, Peter K.
Gerencsér, Máté
author_facet Bellingeri, Carlo
Friz, Peter K.
Gerencsér, Máté
contents Motivated by recent applications in rough volatility and regularity structures, notably the notion of singular modelled distribution, we study paths, rough paths and related objects with a quantified singularity at zero. In a pure path setting this allows us to leverage on existing SLE Besov estimates to see that SLE traces takes values in a singular Hölder space, which quantifies a well-known boundary effect in the regime $κ< 1$. We then consider the integration theory against singular rough paths and some extensions thereof. This gives a method to reconcile, from a regularity structure point of view, different singular kernels used to construct (fractional) rough volatility models and an effective reduction to the stationary case which is crucial to apply general renormalisation methods.
format Preprint
id arxiv_https___arxiv_org_abs_2003_03352
institution arXiv
publishDate 2020
record_format arxiv
spellingShingle Singular paths spaces and applications
Bellingeri, Carlo
Friz, Peter K.
Gerencsér, Máté
Probability
60L20, 60L30, 60L90
Motivated by recent applications in rough volatility and regularity structures, notably the notion of singular modelled distribution, we study paths, rough paths and related objects with a quantified singularity at zero. In a pure path setting this allows us to leverage on existing SLE Besov estimates to see that SLE traces takes values in a singular Hölder space, which quantifies a well-known boundary effect in the regime $κ< 1$. We then consider the integration theory against singular rough paths and some extensions thereof. This gives a method to reconcile, from a regularity structure point of view, different singular kernels used to construct (fractional) rough volatility models and an effective reduction to the stationary case which is crucial to apply general renormalisation methods.
title Singular paths spaces and applications
topic Probability
60L20, 60L30, 60L90
url https://arxiv.org/abs/2003.03352