Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: Can Tests for Jumps be Viewed as Tests for Clusters?   We investigate the utility in employing asymptotic results related to a
clustering criterion to the problem of testing for the presence of jumps in
financial models. We consider the Jump Diffusion model for option pricing and
demonstrate how the testing problem can be reduced to the problem of testing
for the presence of clusters in the increments data. The overarching premise
behind the proposed approach is in the isolation of the increments with
considerably larger mean pertaining to the jumps from the ones which arise from
the diffusion component. Empirical verification is provided via simulations and
the test is applied to financial datasets.

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The categories of this paper are: mtrl-th
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The categories of this paper are: cmp-lg
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The categories of this paper are: chem-ph
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The categories of this paper are: gr-qc
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The categories of this paper are: q-alg
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The categories of this paper are: math-ph
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The categories of this paper are: ao-sci
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The categories of this paper are: plasm-ph
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The categories of this paper are: solv-int
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The categories of this paper are: atom-ph
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The categories of this paper are: q-fin
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The categories of this paper are: physics
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The categories of this paper are: nucl-th
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The categories of this paper are: eess
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The categories of this paper are: cond-mat
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The categories of this paper are: supr-con