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Geometrical Brownian Motion Driven by Color Noise

2007/02/26 by Ryszard Zygadło, Zygadło, Ryszard
Economics, Econometrics and Finance · Physics and Astronomy · #Complex Systems and Time Series Analysis #FOS: Economics and business #FOS: Physical sciences #Financial Risk and Volatility Modeling #Statistical Finance (q-fin.ST) #Statistical Mechanics (cond-mat.stat-mech) #Stochastic processes and financial applications #cond-mat.stat-mech #q-fin.ST

paper · pdf · doi:10.48550/arxiv.cond-mat/0702607

presented at FENS, 2006, Cracow, April 22

arxiv created 2007/02/26 · openalex publication_date 2007/02/26 · arxiv updated 2016/08/14 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

Abstract

The evolution of prices on ideal market is given by geometrical Brownian motion, where Gaussian white noise describes fluctuations. We study the effect of correlations introduced by a color noise.

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