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We construct a correlation matrix based financial network for a set of New York Stock Exchange (NYSE) traded stocks with stocks corresponding to nodes and the links between them added one after the other, according to the strength of the…

Physics and Society · Physics 2007-05-23 G. Tibely , J. -P. Onnela , J. Saramaki , K. Kaski , J. Kertesz

Correlation matrices inferred from stock return time series contain information on the behaviour of the market, especially on clusters of highly correlating stocks. Here we study a subset of New York Stock Exchange (NYSE) traded stocks and…

Physics and Society · Physics 2009-11-13 Tapio Heimo , Jari Saramaki , Jukka-Pekka Onnela , Kimmo Kaski

We study some properties of eigenvalue spectra of financial correlation matrices. In particular, we investigate the nature of the large eigenvalue bulks which are observed empirically, and which have often been regarded as a consequence of…

Statistical Finance · Quantitative Finance 2015-05-27 G. Livan , S. Alfarano , E. Scalas

We analyse the structure of the distribution of eigenvalues of the stock market correlation matrix with increasing length of the time series representing the price changes. We use 100 highly-capitalized stocks from the American market and…

Physics and Society · Physics 2009-11-11 J. Kwapien , P. Oswiecimka , S. Drozdz

Financial stock returns correlations have been studied in the prism of random matrix theory, to distinguish the signal from the "noise". Eigenvalues of the matrix that are above the rescaled Marchenko Pastur distribution can be interpreted…

Statistical Finance · Quantitative Finance 2025-08-19 Ixandra Achitouv

We find a novel correlation structure in the residual noise of stock market returns that is remarkably linked to the composition and stability of the top few significant factors driving the returns, and moreover indicates that the noise…

Risk Management · Quantitative Finance 2009-12-15 Ivailo I. Dimov , Petter N. Kolm , Lee Maclin , Dan Y. C. Shiber

We introduce a method for describing eigenvalue distributions of correlation matrices from multidimensional time series. Using our newly developed matrix H theory, we improve the description of eigenvalue spectra for empirical correlation…

Statistical Finance · Quantitative Finance 2025-12-01 Luan M. T. de Moraes , Antônio M. S. Macêdo , Giovani L. Vasconcelos , Raydonal Ospina

In the analysis of complex networks, centrality measures and community structures play pivotal roles. For multilayer networks, a critical challenge lies in effectively integrating information across diverse layers while accounting for the…

Methodology · Statistics 2025-03-28 Zhuoye Han , Tiandong Wang , Zhiliang Ying

While symmetry has been exploited to analyze synchronization patterns in complex networks, the identification of symmetries in large-size network remains as a challenge. We present in the present work a new method, namely the method of…

Adaptation and Self-Organizing Systems · Physics 2023-08-04 Huwei Fan , Xingang Wang

A new methodology has been introduced to clean the correlation matrix of single stocks returns based on a constrained principal component analysis using financial data. Portfolios were introduced, namely "Fundamental Maximum Variance…

Portfolio Management · Quantitative Finance 2020-01-27 Sebastien Valeyre

The spectra of empirical correlation matrices, constructed from multivariate data, are widely used in many areas of sciences, engineering and social sciences as a tool to understand the information contained in typically large datasets. In…

Data Analysis, Statistics and Probability · Physics 2021-08-12 Udaysinh T. Bhosale , S. Harshini Tekur , M. S. Santhanam

We study structure, eigenvalue spectra and diffusion dynamics in a wide class of networks with subgraphs (modules) at mesoscopic scale. The networks are grown within the model with three parameters controlling the number of modules, their…

Statistical Mechanics · Physics 2009-08-25 Marija Mitrović , Bosiljka Tadić

Many recent works have studied the eigenvalue spectrum of the Conjugate Kernel (CK) defined by the nonlinear feature map of a feedforward neural network. However, existing results only establish weak convergence of the empirical eigenvalue…

Machine Learning · Statistics 2024-02-16 Zhichao Wang , Denny Wu , Zhou Fan

It has been shown that, if a model displays long-range (power-law) spatial correlations, its equal-time correlation matrix of this model will also have a power law tail in the distribution of its high-lying eigenvalues. The purpose of this…

Statistical Mechanics · Physics 2017-01-26 Soham Biswas , Francois Leyvraz , Paulino Monroy Castillero , Thomas H Seligman

The eigenvalue distribution of the Hessian matrix plays a crucial role in understanding the optimization landscape of deep neural networks. Prior work has attributed the well-documented ``bulk-and-spike'' spectral structure, where a few…

Machine Learning · Computer Science 2026-05-26 Shenyang Deng , Boyao Liao , Zhuoli Ouyang , Tianyu Pang , Yaoqing Yang

We derive the exact form of the eigenvalue spectra of correlation matrices derived from a set of time-shifted, finite Brownian random walks (time-series). These matrices can be seen as random, real, asymmetric matrices with a special…

Physics and Society · Physics 2008-12-02 Christoly Biely , Stefan Thurner

We present a novel approach for computing a variant of eigenvector centrality for multilayer networks with inter-layer constraints on node importance. Specifically, we consider a multilayer network defined by multiple edge-weighted,…

Physics and Society · Physics 2024-03-26 H. Robert Frost

The correlation matrix is the key element in optimal portfolio allocation and risk management. In particular, the eigenvectors of the correlation matrix corresponding to large eigenvalues can be used to identify the market mode, sectors and…

Trading and Market Microstructure · Quantitative Finance 2019-11-05 S. Valeyre , D. S. Grebenkov , S. Aboura

Many real-world complex systems have small-world topology characterized by the high clustering of nodes and short path lengths.It is well-known that higher clustering drives localization while shorter path length supports delocalization of…

Disordered Systems and Neural Networks · Physics 2021-02-24 Ankit Mishra , Jayendra N. Bandyopadhyay , Sarika Jalan

In this survey paper it is illustrated how spectral clustering methods for unweighted graphs are adapted to the dense and sparse regimes. Whereas Laplacian and modularity based spectral clustering is apt to dense graphs, recent results show…

Combinatorics · Mathematics 2024-12-03 Marianna Bolla , Hannu Reittu , Runtian Zhou
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