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We study the statistical properties of the recurrence intervals $\tau$ between successive trading volumes exceeding a certain threshold $q$. The recurrence interval analysis is carried out for the 20 liquid Chinese stocks covering a period…

Statistical Finance · Quantitative Finance 2010-07-08 Fei Ren , Wei-Xing Zhou

We extend and test empirically the multifractal model of asset returns based on a multiplicative cascade of volatilities from large to small time scales. The multifractal description of asset fluctuations is generalized into a multivariate…

Statistical Mechanics · Physics 2008-12-10 J. -F. Muzy , D. Sornette , J. Delour , A. Arneodo

We study the temporal fluctuations in time-dependent stock prices (both individual and composite) as a stochastic phenomenon using general techniques and methods of nonequilibrium statistical mechanics. In particular, we analyze stock price…

Physics and Society · Physics 2008-12-02 M. Constantin , S. Das Sarma

We introduce a multivariate stochastic volatility model for asset returns that imposes no restrictions to the structure of the volatility matrix and treats all its elements as functions of latent stochastic processes. When the number of…

Machine Learning · Statistics 2017-01-09 P. Dellaportas , A. Plataniotis , M. K. Titsias

A simple quantum model explains the Levy-unstable distributions for individual stock returns observed by ref.[1]. The probability density function of the returns is written as the squared modulus of an amplitude. For short time intervals…

Physics and Society · Physics 2008-12-02 Martin Schaden

We consider the randomness of market trade as the origin of price and return stochasticity. We look at time series of trade values and volumes as random variables during the averaging interval {\Delta} and describe the dependences of…

Statistical Finance · Quantitative Finance 2024-06-18 Victor Olkhov

Several works have observed heavy-tailed behavior in the distributions of returns in different markets, which are observable indicators of underlying complex dynamics. Such prior works study return distributions that are marginalized across…

Statistical Mechanics · Physics 2024-01-11 Hideyuki Miyahara , Hai Qian , Pavan Holur , Vwani Roychowdhury

Fundamental variables in financial market are not only price and return but a very important role is also played by trading volumes. Here we propose a new multivariate model that takes into account price returns, logarithmic variation of…

Statistical Finance · Quantitative Finance 2020-07-14 Guglielmo D'Amico , Filippo Petroni

We investigate scaling and memory effects in return intervals between price volatilities above a certain threshold $q$ for the Japanese stock market using daily and intraday data sets. We find that the distribution of return intervals can…

Statistical Finance · Quantitative Finance 2009-11-13 Woo-Sung Jung , Fengzhong Wang , Shlomo Havlin , Taisei Kaizoji , Hie-Tae Moon , H. Eugene Stanley

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

Multifractal analysis and extensive statistical tests are performed upon intraday minutely data within individual trading days for four stock market indexes (including HSI, SZSC, S&P500, and NASDAQ) to check whether the indexes (instead of…

Statistical Finance · Quantitative Finance 2008-12-02 Zhi-Qiang Jiang , Wei-Xing Zhou

The rough Bergomi (rBergomi) model, characterised by its roughness parameter $H$, has been shown to exhibit multiscaling behaviour as $H$ approaches zero. Multiscaling has profound implications for financial modelling: it affects extreme…

Statistical Finance · Quantitative Finance 2026-01-19 Giuseppe Brandi , Tiziana Di Matteo

We report evidence of a deep interplay between cross-correlations hierarchical properties and multifractality of New York Stock Exchange daily stock returns. The degree of multifractality displayed by different stocks is found to be…

Statistical Finance · Quantitative Finance 2014-04-10 Raffaello Morales , T. Di Matteo , Tomaso Aste

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

We study the price dynamics of stocks traded in a financial market by considering the statistical properties both of a single time series and of an ensemble of stocks traded simultaneously. We use the $n$ stocks traded in the New York Stock…

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

This paper describes the dependence of market-based statistical moments of returns on statistical moments and correlations of the current and past trade values. We use Markowitz's definition of value weighted return of a portfolio as the…

General Economics · Economics 2026-02-17 Victor Olkhov

Energy markets and the associated energy futures markets play a crucial role in global economies. We investigate the statistical properties of the recurrence intervals of daily volatility time series of four NYMEX energy futures, which are…

Statistical Finance · Quantitative Finance 2013-12-31 Wen-Jie Xie , Zhi-Qiang Jiang , Wei-Xing Zhou

For many externally driven complex systems neither the noisy driving force, nor the internal dynamics are a priori known. Here we focus on systems for which the time dependent activity of a large number of components can be monitored,…

Statistical Mechanics · Physics 2008-12-02 Zoltan Eisler , Janos Kertesz , Soon-Hyung Yook , Albert-Laszlo Barabasi

The scaling properties of the time series of asset prices and trading volumes of stock markets are analysed. It is shown that similarly to the asset prices, the trading volume data obey multi-scaling length-distribution of low-variability…

Statistical Mechanics · Physics 2008-12-02 Robert Kitt , Jaan Kalda

We consider a few quantities that characterize trading on a stock market in a fixed time interval: logarithmic returns, volatility, trading activity (i.e., the number of transactions), and volume traded. We search for the power-law…

Statistical Finance · Quantitative Finance 2016-01-20 Rafal Rak , Stanislaw Drozdz , Jaroslaw Kwapien , Pawel Oswiecimka