Approximating the signature of Brownian motion for high order SDE simulation

Fuente: arXiv
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Autore principale: Foster, James
Natura: Preprint
Pubblicazione: 2024
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author Foster, James
author_facet Foster, James
contents The signature is a collection of iterated integrals describing the "shape" of a path. It appears naturally in the Taylor expansions of controlled differential equations and, as a consequence, is arguably the central object within rough path theory. In this paper, we will consider the signature of Brownian motion with time, and present both new and recently developed approximations for some of its integrals. Since these integrals (or equivalent Lévy areas) are nonlinear functions of the Brownian path, they are not Gaussian and known to be challenging to simulate. To conclude the paper, we will present some applications of these approximations to the high order numerical simulation of stochastic differential equations (SDEs).
format Preprint
id arxiv_https___arxiv_org_abs_2409_10118
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Approximating the signature of Brownian motion for high order SDE simulation
Foster, James
Numerical Analysis
Probability
60H35, 60J65, 60L90, 65C30
The signature is a collection of iterated integrals describing the "shape" of a path. It appears naturally in the Taylor expansions of controlled differential equations and, as a consequence, is arguably the central object within rough path theory. In this paper, we will consider the signature of Brownian motion with time, and present both new and recently developed approximations for some of its integrals. Since these integrals (or equivalent Lévy areas) are nonlinear functions of the Brownian path, they are not Gaussian and known to be challenging to simulate. To conclude the paper, we will present some applications of these approximations to the high order numerical simulation of stochastic differential equations (SDEs).
title Approximating the signature of Brownian motion for high order SDE simulation
topic Numerical Analysis
Probability
60H35, 60J65, 60L90, 65C30
url https://arxiv.org/abs/2409.10118