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Power law for ensembles of stock prices

Statistical Mechanics 2013-09-11 v2 Physics and Society Statistical Finance

Abstract

In this paper we quantitatively investigate the statistical properties of an ensemble of {\it stock prices}. We selected 1200 stocks traded in the Tokyo Stock Exchange and formed a statistical ensemble of daily stock prices for each trading day in the 5 year period from January 4, 1988 to December 30, 1992. We found that the tail of the complementary cumulative distribution function of the ensembles is accurately described by a power-law distribution with an exponent that moves in the range of 1.7<α<2.2 1.7 < \alpha < 2.2 .

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Cite

@article{arxiv.cond-mat/0312406,
  title  = {Power law for ensembles of stock prices},
  author = {Taisei Kaizoji and Michiyo Kaizoji},
  journal= {arXiv preprint arXiv:cond-mat/0312406},
  year   = {2013}
}

Comments

4 pages, 1 figure