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We review some methods recently used in the literature to detect the existence of a certain degree of common behavior of stock returns belonging to the same economic sector. Specifically, we discuss methods based on random matrix theory and…

Physics and Society · Physics 2021-08-25 C. Coronnello , M. Tumminello , F. Lillo , S. Micciche` , R. N. Mantegna

Many systems of different nature exhibit scale free behaviors. Economic systems with power law distribution in the wealth is one of the examples. To better understand the working behind the complexity, we undertook an empirical study…

Statistical Finance · Quantitative Finance 2009-11-13 S. C. Wang , J. J. Tseng , C. C. Tai , K. H. Lai , W. S. Wu , S. H. Chen , S. P. Li

Many complex networks demonstrate a phenomenon of striking degree correlations, i.e., a node tends to link to other nodes with similar (or dissimilar) degrees. From the perspective of degree correlations, this paper attempts to characterize…

Physics and Society · Physics 2014-10-21 Bin Jiang , Yingying Duan , Feng Lu , Tinghong Yang , Jing Zhao

Bipartite networks provide an insightful representation of many systems, ranging from mutualistic networks of species interactions to investment networks in finance. The analysis of their topological structures has revealed the ubiquitous…

Physics and Society · Physics 2018-07-20 Mika J. Straka , Guido Caldarelli , Tiziano Squartini , Fabio Saracco

Modular structure is pervasive in many complex networks of interactions observed in natural, social and technological sciences. Its study sheds light on the relation between the structure and function of complex systems. Generally speaking,…

Data Analysis, Statistics and Probability · Physics 2010-05-10 Alex Arenas , Javier Borge-Holthoefer , Sergio Gomez , Gorka Zamora-Lopez

The complexity of financial markets arise from the strategic interactions among agents trading stocks, which manifest in the form of vibrant correlation patterns among stock prices. Over the past few decades, complex financial markets have…

Statistical Finance · Quantitative Finance 2021-02-02 Areejit Samal , Hirdesh K. Pharasi , Sarath Jyotsna Ramaia , Harish Kannan , Emil Saucan , Jürgen Jost , Anirban Chakraborti

Clustering $\unicode{x2013}$ the tendency for neighbors of nodes to be connected $\unicode{x2013}$ quantifies the coupling of a complex network to its latent metric space. In random geometric graphs, clustering undergoes a continuous phase…

Physics and Society · Physics 2022-11-22 Jasper van der Kolk , M. Ángeles Serrano , Marián Boguñá

Network architecture design is very important for the optimization of industrial networks. The type of network architecture can be divided into small-scale network and large-scale network according to its scale. Graph theory is an efficient…

Social and Information Networks · Computer Science 2022-09-20 Chao Dong , Xiaoxiong Xiong , Qiulin Xue , Zhengzhen Zhang , Kai Niu , Ping Zhang

This paper investigates the dynamics of in the S&P500 index from daily returns for the last 30 years. Using a stochastic geometry technique, each S&P500 yearly batch of data is embedded in a subspace that can be accurately described by a…

Statistical Mechanics · Physics 2016-08-16 Tanya Araújo , Francisco Louçã

In this paper we provide evidence that financial option markets for equity indices give rise to non-trivial dependency structures between its constituents. Thus, if the individual constituent distributions of an equity index are inferred…

Pricing of Securities · Quantitative Finance 2009-09-22 Alex Langnau

Network connections, both across and within markets, are central in countless economic contexts. In recent decades, a large literature has developed and applied flexible methods for measuring network connectedness and its evolution, based…

Econometrics · Economics 2025-12-19 Bastien Buchwalter , Francis X. Diebold , Kamil Yilmaz

One of the most challenging aspects in the analysis and modelling of financial markets, including Credit Default Swap (CDS) markets, is the presence of an emergent, intermediate level of structure standing in between the microscopic…

Risk Management · Quantitative Finance 2023-05-30 Ioannis Anagnostou , Tiziano Squartini , Drona Kandhai , Diego Garlaschelli

In this article we review several techniques to extract information from stock market data. We discuss recurrence analysis of time series, decomposition of aggregate correlation matrices to study co-movements in financial data, stock level…

General Finance · Quantitative Finance 2016-07-20 Kiran Sharma , Shreyansh Shah , Anindya S. Chakrabarti , Anirban Chakraborti

Systems as diverse as genetic networks or the world wide web are best described as networks with complex topology. A common property of many large networks is that the vertex connectivities follow a scale-free power-law distribution. This…

Disordered Systems and Neural Networks · Physics 2015-06-25 Albert-Laszlo Barabasi , Reka Albert

Topological Data Analysis (TDA) is increasingly crucial in investigating the shape of complex data structures across scientific fields, particularly in neuroscience and finance. This study delves into persistent homology, a TDA component…

Physics and Society · Physics 2024-09-17 Roel Gisolf , Fernando A. N. Santos , Felix Wierstra

Real-world networks process structured connections since they have non-trivial vertex degree correlation and clustering. Here we propose a toy model of structure formation in real-world weighted network. In our model, a network evolves by…

Physics and Society · Physics 2015-06-26 C. C. Leung , H. F. Chau

We develop a system-theoretic framework for the structured analysis of distributed optimization algorithms with decomposable cost functions. We model such algorithms as a network of interacting dynamical systems and derive tests for…

Optimization and Control · Mathematics 2026-04-14 Aron Karakai , Jaap Eising , Andrea Martinelli , Florian Dörfler

We show that fractality in complex networks arises from the geometric self-similarity of their built-in hierarchical community-like structure, which is mathematically described by the scale-invariant equation for the masses of the boxes…

We review the state of the art of clustering financial time series and the study of their correlations alongside other interaction networks. The aim of this review is to gather in one place the relevant material from different fields, e.g.…

Statistical Finance · Quantitative Finance 2021-04-14 Gautier Marti , Frank Nielsen , Mikołaj Bińkowski , Philippe Donnat

We present a novel agent-based approach to simulating an over-the-counter (OTC) financial market in which trades are intermediated solely by market makers and agent visibility is constrained to a network topology. Dynamics, such as changes…

Econometrics · Economics 2024-05-07 James T. Wilkinson , Jacob Kelter , John Chen , Uri Wilensky
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