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We study, both analytically and numerically, an ARCH-like, multiscale model of volatility, which assumes that the volatility is governed by the observed past price changes on different time scales. With a power-law distribution of time…

Physics and Society · Physics 2008-12-02 L. Borland , J. -Ph. Bouchaud

We analyze the financial crash in 2008 for different financial markets from the point of view of log-periodic function model. In particular, we consider Dow Jones index, DAX index and Hang Seng index. We shortly discuss the possible…

Statistical Finance · Quantitative Finance 2015-05-18 Katarzyna Bolonek-Lason , Piotr Kosinski

This paper expands on stochastic volatility models by proposing a data-driven method to select the macroeconomic events most likely to impact volatility. The paper identifies and quantifies the effects of macroeconomic events across…

Statistical Finance · Quantitative Finance 2024-11-26 Igor Martins , Hedibert Freitas Lopes

Stock price change in financial market occurs through transactions in analogy with diffusion in stochastic physical systems. The analysis of price changes in real markets shows that long-range correlations of price fluctuations largely…

Statistical Mechanics · Physics 2008-12-10 V. Gontis

In foreign exchange markets monotonic rate changes can be observed in time scale of order of an hour on the days that governmental interventions took place. We estimate the starting time of an intervention using this characteristic behavior…

Data Analysis, Statistics and Probability · Physics 2008-12-02 Takayuki Mizuno , Yukiko Umeno Saito , Tsutomu Watanabe , Hideki Takayasu

The two phase behavior in financial markets actually means the bifurcation phenomenon, which represents the change of the conditional probability from an unimodal to a bimodal distribution. In this paper, the bifurcation phenomenon in…

Statistical Finance · Quantitative Finance 2009-11-13 Shi-Mei Jiang , Shi-Min Cai , Tao Zhou , Pei-Ling Zhou

A thin layer of liquid in a horizontal cell is subjected to a periodic vertical force with two control parameters: acceleration and frequency. The influence of the rheological behavior of the fluid was considered over the empirically…

Mathematical Physics · Physics 2008-04-24 M. Rosen , M. Piacquadio

We investigate topology and temporal evolution of the foreign currency exchange market viewed from a weighted network perspective. Based on exchange rates for a set of 46 currencies (including precious metals), we construct different…

Statistical Finance · Quantitative Finance 2009-02-02 Jaroslaw Kwapien , Sylwia Gworek , Stanislaw Drozdz

The multifractal structure of the temporal dependence of the Deutsche Aktienindex (DAX) is analyzed. The $q$-th order moments of the structure functions and the singular measures are calculated. The generalized Hurst exponent $H(q)$ and the…

Condensed Matter · Physics 2009-11-07 M. Ausloos , K. Ivanova

The local Hurst exponent, a measure employed to detect the presence of dependence in a time series, may also be used to investigate the source of intraday variation observed in the returns in foreign exchange markets. Given that changes in…

Statistics Theory · Mathematics 2009-11-10 Jonathan A. Batten , Craig A. Ellis , Warren P. Hogan

The herd behavior of returns is investigated in Korean futures exchange market. It is obtained that the probability distribution of returns for three types of herding parameter scales as a power law $R^{-\beta}$ with the exponents $…

Statistical Mechanics · Physics 2008-12-02 Kyungsik Kim , Seong-Min Yoon , Yup Kim

We provide an alternative method for analysis of multifractal properties of time series. The new approach takes into account the behaviour of the whole multifractal profile of the generalized Hurst exponent $h(q)$ for all moment orders $q$,…

Statistical Finance · Quantitative Finance 2013-09-24 Dariusz Grech , Grzegorz Pamuła

We study the volatility time series of 1137 most traded stocks in the US stock markets for the two-year period 2001-02 and analyze their return intervals $\tau$, which are time intervals between volatilities above a given threshold $q$. We…

Statistical Finance · Quantitative Finance 2009-03-05 Fengzhong Wang , Kazuko Yamasaki , Shlomo Havlin , H. Eugene Stanley

Multifractal analysis is one of the important approaches that enables us to measure the complexity of various data via the scaling properties. We compare the most common techniques used for multifractal exponents estimation from both…

Statistical Finance · Quantitative Finance 2016-10-25 Petr Jizba , Jan Korbel

In the last decades, an ever-growing number of studies are focusing on the extreme weather conditions related to the climate change. Some of them are based on multifractal approaches, such as the Multifractal Detrended Fluctuation Analysis…

Atmospheric and Oceanic Physics · Physics 2023-11-17 J. Gomez-Gomez , R. Carmona-Cabezas , A. B. Ariza-Villaverde , E. Gutierrez de Rave , F. J. Jimenez-Hornero

We propose a multifractal model for short-term interest rates. The model is a version of the Markov-Switching Multifractal (MSM), which incorporates the well-known level effect observed in interest rates. Unlike previously suggested models,…

Statistical Finance · Quantitative Finance 2011-11-23 M. Rypdal , O. Løvsletten

This contribution addresses the question commonly asked in scientific literature about the sources of multifractality in time series. Two primary sources are typically considered. These are temporal correlations and heavy tails in the…

Data Analysis, Statistics and Probability · Physics 2025-01-16 Robert Kluszczyński , Stanisław Drożdż , Jarosław Kwapień , Tomasz Stanisz , Marcin Wątorek

In a universe with a single currency, there would be no foreign exchange market, no foreign exchange rates, and no foreign exchange. Over the past twenty-five years, the way the market has performed those tasks has changed enormously. The…

Artificial Intelligence · Computer Science 2016-11-17 Ajith Abraham

Stock market comovements are examined using cointegration, Granger causality tests and nonlinear approaches in context of mutual information and correlations. Underlying data sets are affected by non-stationarities and trends, we also apply…

Statistical Finance · Quantitative Finance 2017-07-07 Paulo Ferreira , Andreia Dionísio , S. M. S. Movahed

Identifying behavior that is relatively invariant under different conditions is a challenging task in far-from-equilibrium complex systems. As an example of how the existence of a semi-invariant signature can be masked by the heterogeneity…

Statistical Finance · Quantitative Finance 2018-06-22 Abhijit Chakraborty , Soumya Easwaran , Sitabhra Sinha
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