Regularized Learning for Fractional Brownian Motion via Path Signatures

Fuente: arXiv
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Main Authors: Mohaddes, Ali, Iafrate, Francesco, Lederer, Johannes
Format: Preprint
Published: 2025
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author Mohaddes, Ali
Iafrate, Francesco
Lederer, Johannes
author_facet Mohaddes, Ali
Iafrate, Francesco
Lederer, Johannes
contents Fractional Brownian motion (fBm) extends classical Brownian motion by introducing dependence between increments, governed by the Hurst parameter $H\in (0,1)$. Unlike traditional Brownian motion, the increments of an fBm are not independent. Paths generated by fractional Brownian motions can exhibit significant irregularity, particularly when the Hurst parameter is small. As a result, classical regression methods may not perform effectively. Signatures, defined as iterated path integrals of continuous and discrete-time processes, offer a universal nonlinearity property that simplifies the challenge of feature selection in time series data analysis by effectively linearizing it. Consequently, we employ Lasso regression techniques for regularization when handling irregular data. To evaluate the performance of signature Lasso on fractional Brownian motion (fBM), we study its consistency when the Hurst parameter $ H \ne \frac{1}{2} $. This involves deriving bounds on the first and second moments of the signature. For the case $ H > \frac{1}{2} $, we use the signature defined in the Young sense, while for $ H < \frac{1}{2} $, we use the Stratonovich interpretation. Simulation results indicate that signature Lasso can outperform traditional regression methods for synthetic data as well as for real-world datasets.
format Preprint
id arxiv_https___arxiv_org_abs_2506_16156
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Regularized Learning for Fractional Brownian Motion via Path Signatures
Mohaddes, Ali
Iafrate, Francesco
Lederer, Johannes
Statistics Theory
Fractional Brownian motion (fBm) extends classical Brownian motion by introducing dependence between increments, governed by the Hurst parameter $H\in (0,1)$. Unlike traditional Brownian motion, the increments of an fBm are not independent. Paths generated by fractional Brownian motions can exhibit significant irregularity, particularly when the Hurst parameter is small. As a result, classical regression methods may not perform effectively. Signatures, defined as iterated path integrals of continuous and discrete-time processes, offer a universal nonlinearity property that simplifies the challenge of feature selection in time series data analysis by effectively linearizing it. Consequently, we employ Lasso regression techniques for regularization when handling irregular data. To evaluate the performance of signature Lasso on fractional Brownian motion (fBM), we study its consistency when the Hurst parameter $ H \ne \frac{1}{2} $. This involves deriving bounds on the first and second moments of the signature. For the case $ H > \frac{1}{2} $, we use the signature defined in the Young sense, while for $ H < \frac{1}{2} $, we use the Stratonovich interpretation. Simulation results indicate that signature Lasso can outperform traditional regression methods for synthetic data as well as for real-world datasets.
title Regularized Learning for Fractional Brownian Motion via Path Signatures
topic Statistics Theory
url https://arxiv.org/abs/2506.16156