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We present a phenomenological study of stock price fluctuations of individual companies. We systematically analyze two different databases covering securities from the three major US stock markets: (a) the New York Stock Exchange, (b) the…

Statistical Mechanics · Physics 2009-10-31 V. Plerou , P. Gopikrishnan , L. A. N. Amaral , M. Meyer , H. E. Stanley

The frequency of occurrence of prime numbers at unit number spacing intervals exhibits selfsimilar fractal fluctuations concomitant with inverse power law form for power spectrum generic to dynamical systems in nature such as fluid flows,…

General Physics · Physics 2008-11-13 A. M. Selvam

Multivariate probability density functions of returns are constructed in order to model the empirical behavior of returns in a financial time series. They describe the well-established deviations from the Gaussian random walk, such as an…

Condensed Matter · Physics 2007-08-23 E. Alessio , V. Frappietro , M. I. Krivoruchenko , L. J. Streckert

The volatility characterizes the amplitude of price return fluctuations. It is a central magnitude in finance closely related to the risk of holding a certain asset. Despite its popularity on trading floors, the volatility is unobservable…

Physics and Society · Physics 2008-12-02 Zoltan Eisler , Josep Perello , Jaume Masoliver

Truncated Levy flights are stochastic processes which display a crossover from a heavy-tailed Levy behavior to a faster decaying probability distribution function (pdf). Putting less weight on long flights overcomes the divergence of the…

Condensed Matter · Physics 2009-11-10 I. M. Sokolov , A. V. Chechkin , J. Klafter

Utilizing data available from the Kentucky Geonet (KYGeonet.ky.gov) the fossil fuel mining locations created by the Kentucky Geological Survey geo-locating oil and gas wells are mapped using ESRI ArcGIS in Kentucky single plain 1602 ft…

Geophysics · Physics 2016-09-08 Keith Andrew , Karla M. Andrew , Kevin A. Andrew

Intermittency in MHD turbulence has been analyzed using high resolution 2D numerical simulations. We show that the Probability Distribution Functions (PDFs) of the fluctuations of the Elsasser fields, magnetic field and velocity field…

Chaotic Dynamics · Physics 2015-06-26 L. Sorriso-Valvo , V. Carbone , P. Veltri , H. Politano , A. Pouquet

Employing a recent technique which allows the representation of nonstationary data by means of a juxtaposition of locally stationary patches of different length, we introduce a comprehensive analysis of the key observables in a financial…

Statistical Finance · Quantitative Finance 2013-05-03 Sabrina Camargo , Silvio M. Duarte Queiros , Celia Anteneodo

Persistence is defined as the probability that the local value of a fluctuating field remains at a particular state for a certain amount of time, before being switched to another state. The concept of persistence has been found to have many…

Fluid Dynamics · Physics 2020-07-30 Subharthi Chowdhuri , Tamás Kalmár-Nagy , Tirtha Banerjee

We study local power fluctuations in numerical simulations of stationary, homogeneous, isotropic turbulence in two and three dimensions with Gaussian forcing. Due to the near-Gaussianity of the one-point velocity distribution, the…

Statistical Mechanics · Physics 2009-11-13 M. M. Bandi , Sergei G. Chumakov , Colm Connaughton

The principle of absence of arbitrage opportunities allows obtaining the distribution of stock price fluctuations by maximizing its information entropy. This leads to a physical description of the underlying dynamics as a random walk…

Statistical Finance · Quantitative Finance 2013-10-31 Rosario Bartiromo

A new approach to solve the continuous-time stochastic inventory problem using the fluctuation theory of Levy processes is developed. This approach involves the recent developments of the scale function that is capable of expressing many…

Optimization and Control · Mathematics 2016-03-25 Kazutoshi Yamazaki

The price of financial assets are, since Bachelier, considered to be described by a (discrete or continuous) time sequence of random variables, i.e a stochastic process. Sharp scaling exponents or unifractal behavior of such processes has…

Statistical Mechanics · Physics 2015-06-25 Marc-Etienne Brachet , Erik Taflin , Jean Marcel Tcheou

The statistics of power fluctuations are studied in simulations of two-dimensional turbulence in both inverse (energy) and direct (enstrophy) cascade regimes from both Lagrangian and Eulerian perspectives. The probability density function…

Statistical Mechanics · Physics 2008-03-01 M. M. Bandi , C. Connaughton

Dynamical systems in nature exhibit selfsimilar fractal fluctuations and the corresponding power spectra follow inverse power law form signifying long-range space-time correlations identified as self-organized criticality. The physics of…

General Physics · Physics 2008-05-23 A. M. Selvam

We propose a model of fractal point process driven by the nonlinear stochastic differential equation. The model is adjusted to the empirical data of trading activity in financial markets. This reproduces the probability distribution…

Physics and Society · Physics 2009-11-13 V. Gontis , B. Kaulakys

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

Selfsimilar space-time fractal fluctuations are generic to dynamical systems in nature such as atmospheric flows, heartbeat patterns, population dynamics, etc. The physics of the long-range correlations intrinsic to fractal fluctuations is…

General Physics · Physics 2010-12-02 A. M. Selvam

Atmospheric wind speeds and their fluctuations at different locations (onshore and offshore) are examined. One of the most striking features is the marked intermittency of probability density functions (PDF) of velocity differences -- no…

Adaptation and Self-Organizing Systems · Physics 2007-05-23 F. Böttcher , St. Barth , J. Peinke

Records of the traded value f_i(t) of stocks display fluctuation scaling, a proportionality between the standard deviation sigma(i) and the average <f(i)>: sigma(i) ~ f(i)^alpha, with a strong time scale dependence alpha(dt). The…

Physics and Society · Physics 2008-12-02 Zoltan Eisler , Janos Kertesz