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We study the dynamic evolution of cross-correlations in the Chinese stock market mainly based on the random matrix theory (RMT). The correlation matrices constructed from the return series of 367 A-share stocks traded on the Shanghai Stock…

Statistical Finance · Quantitative Finance 2017-02-08 Fei Ren , Wei-Xing Zhou

We investigate how large deviations events cluster in the framework of an infinite moving average process with light-tailed noise and long memory. The long memory makes clusters larger, and the asymptotic behaviour of the size of the…

Probability · Mathematics 2023-01-06 Arijit Chakrabarty , Gennady Samorodnitsky

We develop a novel observation-driven model for high-frequency prices. We account for irregularly spaced observations, simultaneous transactions, discreteness of prices, and market microstructure noise. The relation between trade durations…

Statistical Finance · Quantitative Finance 2024-05-09 Vladimír Holý

Mixed order transitions are those which show a discontinuity of the order parameter as well as a divergent correlation length. We show that the behaviour of the order parameter correlation function along the transition line of mixed order…

Statistical Mechanics · Physics 2019-09-04 Mustansir Barma , Satya N. Majumdar , David Mukamel

While entropy changes are the usual subject of fluctuation theorems, we seek fluctuation relations involving time-symmetric quantities, namely observables that do not change sign if the trajectories are observed backward in time. We find…

Statistical Mechanics · Physics 2015-11-04 Marco Baiesi , Gianmaria Falasco

We analyze waiting times for price changes in a foreign currency exchange rate. Recent empirical studies of high frequency financial data support that trades in financial markets do not follow a Poisson process and the waiting times between…

Physics and Society · Physics 2009-11-11 Naoya Sazuka

Cross-sectional signatures of market panic were recently discussed on daily time scales in [1], extended here to a study of cross-sectional properties of stocks on intra-day time scales. We confirm specific intra-day patterns of dispersion…

Statistical Finance · Quantitative Finance 2010-10-26 Lisa Borland , Yoan Hassid

A novel application of the correlation matrix formalism to study dynamics of the financial evolution is presented. This formalism allows to quantify the memory effects as well as some potential repeatable intradaily structures in the…

Soft Condensed Matter · Physics 2009-11-07 S. Drozdz , J. Kwapien , F. Gruemmer , F. Ruf , J. Speth

We study the return interval $\tau$ between price volatilities that are above a certain threshold $q$ for 31 intraday datasets, including the Standard & Poor's 500 index and the 30 stocks that form the Dow Jones Industrial index. For…

Physics and Society · Physics 2008-12-02 Fengzhong Wang , Kazuko Yamasaki , Shlomo Havlin , H. Eugene Stanley

By studying the statistics of recurrence intervals, $\tau$, between volatilities of Internet traffic rate changes exceeding a certain threshold $q$, we find that the probability distribution functions, $P_{q}(\tau)$, for both byte and…

Data Analysis, Statistics and Probability · Physics 2009-10-01 Shi-Min Cai , Zhong-Qian Fu , Tao Zhou , Jun Gu , Pei-Ling Zhou

The multifractal behavior for tick data of prices is investigated in Korean financial market. Using the rescaled range analysis(R/S analysis), we show the multifractal nature of returns for the won-dollar exchange rate and the KOSPI. We…

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

This paper systematically conducts an analysis of the composite index 1-min datasets over the 17-year period (2005-2021) for both the Shanghai and Shenzhen stock exchanges. To reveal the difference between the Chinese and the mature stock…

Statistical Finance · Quantitative Finance 2023-11-27 Peng Liu , Yanyan Zheng

In this paper we demonstrate a striking regularity in the way people place limit orders in financial markets, using a data set consisting of roughly seven million orders from the London Stock Exchange. We define the relative limit price as…

Condensed Matter · Physics 2007-05-23 Ilija I. Zovko , J. Doyne Farmer

Detrended fluctuation analysis is used to investigate power law relationship between the monthly averages of the maximum daily temperatures for different locations in the western US. On the map created by the power law exponents, we can…

Statistical Mechanics · Physics 2007-05-23 M. L. Kurnaz

We conduct modeling of the price dynamics following order flow imbalance in market microstructure and apply the model to the analysis of Chinese CSI 300 Index Futures. There are three findings. The first is that the order flow imbalance is…

Mathematical Finance · Quantitative Finance 2025-05-26 Chen Hu , Kouxiao Zhang

The total value of domestic market capitalization of the Mexican Stock Exchange was calculated at 520 billion of dollars by the end of November 2013. To manage this system and make optimum capital investments, its dynamics needs to be…

Statistical Finance · Quantitative Finance 2014-11-14 Javier Morales , Víctor Tercero , Fernando Camacho , Eduardo Cordero , Luis López , F-Javier Almaguer

This paper models stochastic process of price time series of CSI 300 index in Chinese financial market, analyzes volatility characteristics of intraday high-frequency price data. In the new generalized Barndorff-Nielsen and Shephard model,…

Statistical Finance · Quantitative Finance 2023-01-19 Xianfei Hui , Baiqing Sun , Indranil SenGupta , Yan Zhou , Hui Jiang

The observation of power laws in the time to extrema of volatility, volume and intertrade times, from milliseconds to years, are shown to result straightforwardly from the selection of biased statistical subsets of realizations in otherwise…

Statistical Finance · Quantitative Finance 2015-06-03 Vladimir Filimonov , Didier Sornette

The multifractal detrended fluctuation analysis of time series is able to reveal the presence of long-range correlations and, at the same time, to characterize the self-similarity of the series. The rich information derivable from the…

Biomolecules · Quantitative Biology 2015-02-06 Enrico Maiorino , Lorenzo Livi , Alessandro Giuliani , Alireza Sadeghian , Antonello Rizzi

We analyze the waiting time distribution of time distances $\tau$ between two nearest-neighbor flares. This analysis is based on the joint use of two distinct techniques. The first is the direct evaluation of the distribution function…

Statistical Mechanics · Physics 2009-11-07 Paolo Grigolini , Deborah Leddon , Nicola Scafetta