MATLAB: How to plot stochastic differential equation in three variables

mathematicsMATLAB

dx1=(a+x1-x2*x3)dt-c1dw1; dx2=(v-x2=x2x3)dt-c2dw1; dx3=(q-x3-sx1-x3x1)dt-c3dw2;

Considering the three assets are related to each other, how about drawing them one by one. For more information , http://personal.strath.ac.uk/d.j.higham/algfiles.html

try using the matrix given to you

Px =
    0.5000    0.2000    0.3000
    0.3000    0.7000    0.3000
    0.2000    0.1000    0.4000

the columns represent x1, x2, x3. Then figure out how to write x1+x2+x3 = 1 and augment P with it and solve for the unknowns

So you have four data points (X1,Y1), (X2,Y2), (X3,Y3), (X4,Y4) and you want to find the "best" A such that

[Y1 Y2 Y3 Y4] = A*[X1 X2 X3 X4]

If this is the case,

A = (X1*Y1+X2*Y2+X3*Y3+X4*Y4)/(X1^2+X2^2+X3^2+X4^2)

Best wishes

Torsten.