The characteristic function of rough Heston models

O El Euch, M Rosenbaum - Mathematical Finance, 2019 - Wiley Online Library
It has been recently shown that rough volatility models, where the volatility is driven by a
fractional Brownian motion with small Hurst parameter, provide very relevant dynamics in …

Statistical inference for rough volatility: Minimax theory

CH Chong, M Hoffmann, Y Liu… - The Annals of …, 2024 - projecteuclid.org
Statistical inference for rough volatility: Minimax theory Page 1 The Annals of Statistics 2024,
Vol. 52, No. 4, 1277–1306 https://doi.org/10.1214/23-AOS2343 © Institute of Mathematical …

The rough Hawkes Heston stochastic volatility model

A Bondi, S Pulido, S Scotti - Mathematical Finance, 2024 - Wiley Online Library
We study an extension of the Heston stochastic volatility model that incorporates rough
volatility and jump clustering phenomena. In our model, named the rough Hawkes Heston …

Deep hedging under rough volatility

B Horvath, J Teichmann, Ž Žurič - Risks, 2021 - mdpi.com
We investigate the performance of the Deep Hedging framework under training paths
beyond the (finite dimensional) Markovian setup. In particular, we analyse the hedging …

No‐arbitrage implies power‐law market impact and rough volatility

P Jusselin, M Rosenbaum - Mathematical Finance, 2020 - Wiley Online Library
Market impact is the link between the volume of a (large) order and the price move during
and after the execution of this order. We show that in a quite general framework, under no …

Statistical inference for rough volatility: Central limit theorems

CH Chong, M Hoffmann, Y Liu… - The Annals of Applied …, 2024 - projecteuclid.org
In recent years, there has been a substantive interest in rough volatility models. In this class
of models, the local behavior of stochastic volatility is much more irregular than …

Forecasting volatility in commodity markets with long-memory models

M Alfeus, CS Nikitopoulos - Journal of Commodity Markets, 2022 - Elsevier
Commodities are the most volatile markets, and forecasting their volatility is an issue of
paramount importance. We examine the dynamics of commodity markets volatility by …