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A dynamical model is introduced for the formation of a bullish or bearish trends driving an asset price in a given market. Initially, each agent decides to buy or sell according to its personal opinion, which results from the combination of…

Physics and Society · Physics 2011-06-09 Serge Galam

The field of Financial Networks is a paramount example of the novel applications of Statistical Physics that have made possible by the present data revolution. As the total value of the global financial market has vastly outgrown the value…

The Monte Carlo simulation of the dynamics of complex molecules produces trajectories with a large number of different configurations to sample configuration space. It is expected that these configurations can be classified into a small…

Computational Physics · Physics 2007-05-23 Christoph Best , Hans-Christian Hege

We propose a combination of cluster analysis and stochastic process analysis to characterize high-dimensional complex dynamical systems by few dominating variables. As an example, stock market data are analyzed for which the dynamical…

Statistical Finance · Quantitative Finance 2015-03-10 Philip Rinn , Yuriy Stepanov , Joachim Peinke , Thomas Guhr , Rudi Schäfer

Artificial stock market simulation based on agent is an important means to study financial market. Based on the assumption that the investors are composed of a main fund, small trend and contrarian investors characterized by four…

Trading and Market Microstructure · Quantitative Finance 2021-09-22 Yong Shi , Bo Li , Guangle Du

Based on the daily data of American and Chinese stock markets, the dynamic behavior of a financial network with static and dynamic thresholds is investigated. Compared with the static threshold, the dynamic threshold suppresses the large…

Statistical Finance · Quantitative Finance 2015-05-18 Tian Qiu , Bo Zheng , Guang Chen

Understanding the structure of financial markets deals with suitably determining the functional relation between financial variables. In this respect, important variables are the trading activity, defined here as the number of trades $N$,…

Trading and Market Microstructure · Quantitative Finance 2018-10-16 Mathias Pohl , Alexander Ristig , Walter Schachermayer , Ludovic Tangpi

Factorial moments are convenient tools in nuclear physics to characterize the multiplicity distributions when phase-space resolution ($\Delta$) becomes small. For uncorrelated particle production within $\Delta$, Gaussian statistics holds…

Statistical Finance · Quantitative Finance 2011-08-30 Laurent Schoeffel

Self organisation provides an elegant explanation for how complex structures emerge and persist throughout nature. Surprisingly often, these structures exhibit remarkably similar scale-invariant properties. While this is sometimes captured…

Quantum Gases · Physics 2020-06-25 S. Helmrich , A. Arias , G. Lochead , M. Buchhold , S. Diehl , S. Whitlock

The dynamics of prices in financial markets has been studied intensively both experimentally (data analysis) and theoretically (models). Nevertheless, a complete stochastic characterization of volatility is still lacking. What it is well…

Statistical Mechanics · Physics 2009-10-31 Michele Pasquini , Maurizio Serva

Most of the current understanding of structure-property relations at the molecular and the supramolecular scales can be formulated in terms of the stability of and the interactions between a limited number of recurring structural motifs…

Chemical Physics · Physics 2018-01-29 Piero Gasparotto , Robert Horst Meißner , Michele Ceriotti

Many natural and engineered complex networks have intricate mesoscopic organization, e.g., the clustering of the constituent nodes into several communities or modules. Often, such modularity is manifested at several different hierarchical…

Physics and Society · Physics 2015-05-30 Sitabhra Sinha , Swarup Poria

I find a topological arrangement of stocks traded in a financial market which has associated a meaningful economic taxonomy. The topological space is a graph connecting the stocks of the portfolio analyzed. The graph is obtained starting…

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

``Self-Organised Criticality'' (SOC) is the mechanism by which complex systems spontaneously settle close to a *critical point*, at the edge between stability and chaos, and characterized by fat-tailed fluctuations and long-memory…

General Finance · Quantitative Finance 2024-09-09 Jean-Philippe Bouchaud

There is a large body of work, built on tools developed in mathematics and physics, demonstrating that financial market prices exhibit self-similarity at different scales. In this paper, we explore the use of analytical topology to…

Trading and Market Microstructure · Quantitative Finance 2017-10-25 Jean de Carufel , Martin Brooks , Michael Stieber , Paul Britton

In this brief review, we critically examine the recent work done on correlation-based networks in financial systems. The structure of empirical correlation matrices constructed from the financial market data changes as the individual stock…

Computational Finance · Quantitative Finance 2020-04-21 Vishwas Kukreti , Hirdesh K. Pharasi , Priya Gupta , Sunil Kumar

Multidimensional time series clustering is an important problem in time series data analysis. This paper provides a new research idea for the behavioral analysis of financial markets, using the intrinsic correlation existing between…

Computational Engineering, Finance, and Science · Computer Science 2022-09-27 Pei Dehao

Nowadays, financial data analysis is becoming increasingly important in the business market. As companies collect more and more data from daily operations, they expect to extract useful knowledge from existing collected data to help make…

General Finance · Quantitative Finance 2016-09-28 Fan Cai , Nhien-An Le-Khac , Tahar Kechadi

We construct a correlation matrix based financial network for a set of New York Stock Exchange (NYSE) traded stocks with stocks corresponding to nodes and the links between them added one after the other, according to the strength of the…

Physics and Society · Physics 2007-05-23 G. Tibely , J. -P. Onnela , J. Saramaki , K. Kaski , J. Kertesz

The internal dynamics of strongly interacting systems and that of biomolecules such as proteins display several important analogies, despite the huge difference in their characteristic energy and length scales. For example, in all such…

Biological Physics · Physics 2015-05-30 Pietro Faccioli
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