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We select n stocks traded in the New York Stock Exchange and we form a statistical ensemble of daily stock returns for each of the k trading days of our database from the stock price time series. We analyze each ensemble of stock returns by…

Statistical Mechanics · Physics 2008-12-02 Fabrizio Lillo , Rosario N. Mantegna

By incorporating market impact and asymmetric sensitivity into the evolutionary minority game, we study the coevolutionary dynamics of stock prices and investment strategies in financial markets. Both the stock price movement and the…

Trading and Market Microstructure · Quantitative Finance 2015-06-11 Li-Xin Zhong , Wen-Juan Xu , Fei Ren , Yong-Dong Shi

We analyze the sequence of time intervals between consecutive stock trades of thirty companies representing eight sectors of the U. S. economy over a period of four years. For all companies we find that: (i) the probability density function…

Statistical Mechanics · Physics 2009-11-10 Plamen Ch. Ivanov , Ainslie Yuen , Boris Podobnik , Youngki Lee

Detailed study of the financial empirical correlation matrix of the 30 companies comprised by DAX within the period of the last 11 years, using the time-window of 30 trading days, is presented. This allows to clearly identify a nontrivial…

Statistical Mechanics · Physics 2009-10-31 S. Drozdz , F. Gruemmer , F. Ruf , J. Speth

One of the major issues studied in finance that has always intrigued, both scholars and practitioners, and to which no unified theory has yet been discovered, is the reason why prices move over time. Since there are several well-known…

Statistical Finance · Quantitative Finance 2008-12-02 Sonia R. Bentes , Rui Menezes , Diana A. Mendes

We apply a simple trading strategy for various time series of real and artificial stock prices to understand the origin of fractality observed in the resulting profit landscapes. The strategy contains only two parameters $p$ and $q$, and…

Statistical Finance · Quantitative Finance 2013-08-09 Il Gu Yi , Gabjin Oh , Beom Jun Kim

We investigate the emergence of a structure in the correlation matrix of assets' returns as the time-horizon over which returns are computed increases from the minutes to the daily scale. We analyze data from different stock markets (New…

Physics and Society · Physics 2010-12-08 Christian Borghesi , Matteo Marsili , Salvatore Miccichè

We present a comparative analysis of multifractal properties of financial time series built on stock indices from developing (WIG) and developed (S&P500) financial markets. It is shown how the multifractal image of the market is altered…

Statistical Finance · Quantitative Finance 2011-07-19 Dariusz Grech , Lukasz Czarnecki

This paper reviews some of the phenomenological models which have been introduced to incorporate the scaling properties of financial data. It also illustrates a microscopic model, based on heterogeneous interacting agents, which provides a…

Statistical Mechanics · Physics 2009-10-31 Giulia Iori

In this paper we provide compelling evidence of cyclical mean reversion and multiperiod stock return predictability over horizons of about 30 years with a half-life of about 15 years. This implies that the US stock market follows a…

General Finance · Quantitative Finance 2013-02-01 Valeriy Zakamulin

We investigate the recently introduced variety of a set of stock returns traded in a financial market. This investigation is done by considering daily and intraday time horizons in a 15-day time period centered at the August 31st, 1998…

Statistical Mechanics · Physics 2008-12-02 Fabrizio Lillo , Giovanni Bonanno , Rosario N. Mantegna

Fluctuation scaling is observed phenomenon from complex networks through finance to ecology. It means that the variance and the mean of a specific quantity are related as $\ev{\sigma^2|n}\propto \ev{n|A}^{2\alpha}$ with $1/2\geq \alpha \geq…

Physics and Society · Physics 2008-12-02 Zoltan Eisler , Janos Kertesz

We examine volatility of an Indian stock market in terms of aspects like participation, synchronization of stocks and quantification of volatility using the random matrix approach. Volatility pattern of the market is found using the BSE…

Physics and Society · Physics 2008-12-02 V. Kulkarni , N. Deo

Fat tails in financial time series and increase of stocks cross-correlations in high volatility periods are puzzling facts that ask for new paradigms. Both points are of key importance in fundamental research as well as in Risk Management…

Statistical Mechanics · Physics 2008-12-02 Marco Airoldi

This study conducts a comprehensive analysis of time series segmentation on the Japanese stock prices listed on the first section of the Tokyo Stock Exchange during the period from 4 January 2000 to 30 January 2012. A recursive segmentation…

Statistical Finance · Quantitative Finance 2013-03-22 Aki-Hiro Sato

It has been widely observed that capitalization-weighted indexes can be beaten by surprisingly simple, systematic investment strategies. Indeed, in the U.S. stock market, equal-weighted portfolios, random-weighted portfolios, and other…

Portfolio Management · Quantitative Finance 2018-09-12 Adrian Banner , Robert Fernholz , Vassilios Papathanakos , Johannes Ruf , David Schofield

Time-varying volatility is an inherent feature of most economic time-series, which causes standard correlation estimators to be inconsistent. The quadrant correlation estimator is consistent but very inefficient. We propose a novel…

Econometrics · Economics 2023-11-01 Peter Reinhard Hansen , Yiyao Luo

Using the most comprehensive source of commercially available data on the US National Market System, we analyze all quotes and trades associated with Dow 30 stocks in 2016 from the vantage point of a single and fixed frame of reference. We…

We investigate the variety of a portfolio of stocks in normal and extreme days of market activity. We show that the variety carries information about the market activity which is not present in the single-index model and we observe that the…

Statistical Mechanics · Physics 2009-10-31 Fabrizio Lillo , Rosario N. Mantegna

We analyze the Bombay stock exchange (BSE) price index over the period of last 12 years. Keeping in mind the large fluctuations in last few years, we carefully find out the transient, non-statistical and locally structured variations. For…

Statistical Finance · Quantitative Finance 2010-07-26 Prasanta K. Panigrahi , Sayantan Ghosh , P. Manimaran , Dilip P. Ahalpara
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