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February 19, 20260 citationsOpen Access

Noise Geometry Determines the Ito Correction: A Structural Correspondence Between Generators, Quadratic Variation, and Heat Equation

RFRamiro Fontes

Key Points

  • The aim is to establish a uniqueness principle for Itô correction terms through a causal framework.
  • Consider operator triples that satisfy a specific representation involving causal operators.
  • Prove that Itô correction terms are uniquely determined by the projection geometry.
  • Analyze compatibility of decompositions with the same operator triple and deterministic increasing clock.
  • The finite-variation Itô correction terms coincide as deterministic signed measures for compatible decompositions.
  • Unique identification of coefficients in differential operators with continuous coefficients is established.
  • The geometry of the causal projection structure dictates the second-order correction, rather than being arbitrary.

Abstract

his manuscript establishes a structural uniqueness principle for Itô-type correction terms under a causal derivation–divergence factorization framework. We consider operator triples (D, δ, Π) (D, , ) (D, δ, Π) satisfying a representation of the formF−EF=δ (ΠDF) F - EF = (D F) F−EF=δ (ΠDF), where DDD is a closable derivation, ΠΠ denotes predictable projection in a Hilbert module, and δδ is the adjoint divergence operator. Under this structural assumption, we prove that the finite-variation correction term in Itô-type decompositions is uniquely determined by the underlying projection geometry. In particular, if two decompositions are compatible with the same operator triple and deterministic increasing clock, their correction terms coincide as deterministic signed measures. When the correction is represented by differential operators with continuous coefficients, the coefficients are identified uniquely. The results show that, within this operator framework, the second-order correction is not an arbitrary modeling choice but is forced by the geometry encoded in the causal projection structure. Classical diffusion and Lévy-type generators arise as special cases.

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Cite This Study

Ramiro Fontes (2026) studied this question.

synapsesocial.com/papers/6996a8c7ecb39a600b3efcd1https://doi.org/10.5281/zenodo.18665740
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