Path-dependent processes from signatures

Fuente: arXiv
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Hauptverfasser: Jaber, Eduardo Abi, Gérard, Louis-Amand, Huang, Yuxing
Format: Preprint
Veröffentlicht: 2024
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author Jaber, Eduardo Abi
Gérard, Louis-Amand
Huang, Yuxing
author_facet Jaber, Eduardo Abi
Gérard, Louis-Amand
Huang, Yuxing
contents We provide explicit series expansions to certain stochastic path-dependent integral equations in terms of the path signature of the time augmented driving Brownian motion. Our framework encompasses a large class of stochastic linear Volterra and delay equations and in particular the fractional Brownian motion with a Hurst index $H \in (0, 1)$. Our expressions allow to disentangle an infinite dimensional Markovian structure and open the door to straightforward and simple approximation schemes, that we illustrate numerically.
format Preprint
id arxiv_https___arxiv_org_abs_2407_04956
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Path-dependent processes from signatures
Jaber, Eduardo Abi
Gérard, Louis-Amand
Huang, Yuxing
Probability
60L10, 60L70, 60H20, 60G22
We provide explicit series expansions to certain stochastic path-dependent integral equations in terms of the path signature of the time augmented driving Brownian motion. Our framework encompasses a large class of stochastic linear Volterra and delay equations and in particular the fractional Brownian motion with a Hurst index $H \in (0, 1)$. Our expressions allow to disentangle an infinite dimensional Markovian structure and open the door to straightforward and simple approximation schemes, that we illustrate numerically.
title Path-dependent processes from signatures
topic Probability
60L10, 60L70, 60H20, 60G22
url https://arxiv.org/abs/2407.04956