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A recent model predicting Omori's law giving the number of aftershocks per unit time following an earthquake involves a differential equation analogous to the Friedmann equation of cosmology. The before-shock phase is analogous to an…

General Relativity and Quantum Cosmology · Physics 2020-05-08 Valerio Faraoni

The financial turmoil surrounding the Great Recession called for unprecedented intervention by Central Banks: unconventional policies affected various areas in the economy, including stock market volatility. In order to evaluate such…

General Finance · Quantitative Finance 2021-02-23 Giampiero M. Gallo , Demetrio Lacava , Edoardo Otranto

A part of the seismic time series, in which the Omori law for temporal pattern of aftershocks holds, is refereed to as the Omori regime. Here the properties of correlation between earthquake events both inside and outside of the Omori…

Statistical Mechanics · Physics 2015-06-24 Sumiyoshi Abe , Norikazu Suzuki

We consider a branching model of triggered seismicity, the ETAS (epidemic-type aftershock sequence) model which assumes that each earthquake can trigger other earthquakes (``aftershocks''). An aftershock sequence results in this model from…

Geophysics · Physics 2009-11-10 A. Saichev , D. Sornette

Whether aftershocks originate directly from the mainshock and surrounding stress environment or from afterslip dynamics is crucial to the understanding of the nature of aftershocks. We build on a classical description of the fault and…

Geophysics · Physics 2019-06-26 Eugenio Lippiello , Giuseppe Petrillo , François Landes , Alberto Rosso

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

In this paper, we describe a newly discovered statistical property of time series data for daily price changes. We conducted quantitative investigation of the {\it calm-time intervals} of price changes for 800 companies listed in the Tokyo…

Statistical Mechanics · Physics 2013-09-11 Taisei Kaizoji , Michiyo Kaizoji

This study examines the relationship between Federal Open Market Committee (FOMC) announcements and financial market network structure through spectral graph theory. Using hypergraph networks constructed from S\&P 100 stocks around FOMC…

General Economics · Economics 2025-10-06 Jaeho Choi , Jaewon Kim , Seyoung Chung , Chae-shick Chung , Yoonsoo Lee

Synchronising a database of stock specific news with 5 years worth of order book data on 300 stocks, we show that abnormal price movements following news releases (exogenous) exhibit markedly different dynamical features from those arising…

Trading and Market Microstructure · Quantitative Finance 2022-02-23 Riccardo Marcaccioli , Jean-Philippe Bouchaud , Michael Benzaquen

During any unique crisis, panic sell-off leads to a massive stock market crash that may continue for more than a day, termed as mainshock. The effect of a mainshock in the form of aftershocks can be felt throughout the recovery phase of…

Statistical Finance · Quantitative Finance 2021-10-18 Anish Rai , Ajit Mahata , Md Nurujjaman , Om Prakash

The presented paper is devoted to the search for mathematical basis for describing the aftershock evolution of strong earthquakes. We consider the experimental facts and heuristic arguments that allow to make a choice and to focus on the…

Geophysics · Physics 2020-09-24 A. V. Guglielmi , B. I. Klain

We propose a new metric to quantify the correlation between any two earthquakes. The metric consists of a product involving the time interval and spatial distance between two events, as well as the magnitude of the first one. According to…

Statistical Mechanics · Physics 2007-05-23 Marco Baiesi , Maya Paczuski

Using a modified damped harmonic oscillator model equivalent to a model of market dynamics with price expectations, we analyze the reaction of financial markets to shocks. In order to do this, we gather data from indices of a variety of…

General Finance · Quantitative Finance 2011-09-27 Leonidas Sandoval Junior , Italo De Paula Franca

We analyzed the correlations among the parameters of the Reasenberg and Jones (1989) formula describing the aftershock rate after a mainshock as a function of time and magnitude, on the basis of parameter estimates made in previous works…

Geophysics · Physics 2007-05-23 Paolo Gasperini , Barbara Lolli

Crashes have fascinated and baffled many canny observers of financial markets. In the strict orthodoxy of the efficient market theory, crashes must be due to sudden changes of the fundamental valuation of assets. However, detailed empirical…

Trading and Market Microstructure · Quantitative Finance 2017-02-08 Jonathan Donier , Jean-Philippe Bouchaud

We propose a new physically-based ``multifractal stress activation'' model of earthquake interaction and triggering based on two simple ingredients: (i) a seismic rupture results from activated processes giving an exponential dependence on…

Statistical Mechanics · Physics 2007-05-23 G. Ouillon , D. Sornette

It is now well established empirically that financial price changes are distributed according to a power law, with cubic exponent. This is a fascinating regularity, as it holds for various classes of securities, on various markets, and on…

Statistical Finance · Quantitative Finance 2016-12-28 Sabiou Inoua

It has been long stated that there are profound analogies between fracture experiments and earthquakes; however, few works attempt a complete characterization of the parallelisms between these so separate phenomena. We study the Acoustic…

The earthquake source after the main shock can theoretically be represented as a black box without an entrance. At the output, there is a signal in the form of aftershocks, the frequency of which decreases on average with time according to…

Geophysics · Physics 2023-03-07 A. Guglielmi , O. Zotov

Crustal deformation due to the 2016 earthquake sequence in Kumamoto, Japan, that culminated in a preceding earthquake of magnitude M6.5 and a subsequent M7.3 earthquake 28 hours later, caused stress perturbation on and around the causative…

Geophysics · Physics 2021-12-08 K. Z. Nanjo , J. Izutsu , Y. Orihara , M. Kamogawa