English

Combustion Models in Finance

Physics and Society 2008-12-02 v1 General Physics General Finance

Abstract

Combustion reaction kinetics models are used for the description of a special class of bursty Financial Time Series. The small number of parameters they depend upon enable financial analysts to predict the time as well as the magnitude of the jump of the value of the portfolio. Several Financial Time Series are analysed within this framework and applications are given.

Cite

@article{arxiv.physics/0101042,
  title  = {Combustion Models in Finance},
  author = {C. Tannous and A. Fessant},
  journal= {arXiv preprint arXiv:physics/0101042},
  year   = {2008}
}

Comments

6 pages, 8 figures, submitted to European Physical Journal on December 30 2000