English

Correlation Networks Among Currencies

Physics and Society 2009-11-11 v2 Data Analysis, Statistics and Probability Statistical Finance

Abstract

By analyzing the foreign exchange market data of various currencies, we derive a hierarchical taxonomy of currencies constructing minimal-spanning trees. Clustered structure of the currencies and the key currency in each cluster are found. The clusters match nicely with the geographical regions of corresponding countries in the world such as Asia or East Europe, the key currencies are generally given by major economic countries as expected.

Cite

@article{arxiv.physics/0508164,
  title  = {Correlation Networks Among Currencies},
  author = {Takayuki Mizuno and Hideki Takayasu and Misako Takayasu},
  journal= {arXiv preprint arXiv:physics/0508164},
  year   = {2009}
}

Comments

12 pages, 3 figures, 1 table