Statistical Finance

Statistical finance is concerned with: (1.) empirical and phenomenological studies that investigate interesting universal features in financial time series, (2.) the use of these empirical results to devise better models of risk, derivative pricing and decision making under uncertainty; these are often of direct interest to the financial industry, and (3) the study of "agent-based models" aimed at better understanding or uncovering basic mechanisms that are responsible for the observed features in financial time series.